Kennedy,Inc Prepare the Cash Flows from Operating Activities Section of the

question 125

Essay

Kennedy,Inc.reported the following data:
$\begin{array}{|l|r|}\hline \text { Net income } & \$ 118,000 \\\hline \text { Depreciation expense } & 15,000 \\\hline \text { Loss on disposal of equipment } & 10,000 \\\hline \text { Gain on sale of building } & 20,000 \\\hline \text { Increase in accounts receivable } & 7,000 \\\hline \text { Decrease in accounts payable } & 2,000 \\\hline\end{array}$
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Warranty of Merchantability

An implied guarantee that a product will meet the standard quality and performance expectations for goods of its kind.

Garage Sale

An informal, often temporary sale of used goods by private individuals, typically held at the seller's residence.

Express Warranty

A written or spoken promise from a seller about the quality or functionality of a product.

Salesperson's Statement

A formal or informal communication by a salesperson, intended to persuade or inform potential buyers about a product or service.