Plough Company Reported Net Income of $180,000 for the Current

question 111

Essay

Plough Company reported net income of $180,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: $$\begin{array} { l r r } & \text { End of Year } & \text { Beginning of Year } \\ \text { Cash } & \$ 20,000 & \$ 15,000 \\\text { Accounts receivable } & 24,000 & 32,000 \\\text { Inventories } & 50,000 & 65,000 \\\text { Prepaid expenses } & 9,500 & 5,000 \\\text { Accounts payable } & 12,000 & 18,000 \\\text { Income taxes payable } & 1,600 & 1,200\end{array}$$ Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Time Management

The process of organizing and planning how to divide one's time between various activities effectively.

Behavior Change

The process of altering patterns of human behavior over time to achieve desired outcomes or objectives.

Locus of Control

A psychological concept referring to the degree to which individuals believe they have control over the events in their lives.

Self-efficacy

The belief in one's abilities to succeed in specific situations or accomplish a task.