The Current Sections of Robertson Inc

question 17

Essay

The current sections of Robertson Inc.'s statement of financial position at December 31, 2013 and 2014, are presented here.
Robertson's net income for 2014 was $203,000. Depreciation expense was $29,000. Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2014, using the indirect method.

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Definitions:

CCA Class

A categorization in Canadian tax law that determines the depreciation rate for tax purposes on capital assets.

Depreciation Tax Shield

A reduction in taxable income for a business, resulting from the depreciation expense claimed on tangible assets.

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.