The Income Statement Disclosed the Following Items for the Current

question 66

Essay

The income statement disclosed the following items for the current year:
​ $$\begin{array} { | l | r | } \hline \text { Depreciation expense } & \$ 36,000 \\\hline \text { Gain on disposal of equipment } & 21,000 \\\hline \text { Net income } & 317,500 \\\hline\end{array}$$ ​
Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows:
​ $\begin{array}{|l|r|}\hline \text { Increase in accounts receivable } & \$ 5,600 \\\hline \text { Decrease in inventory } & 3,200 \\\hline \text { Decrease in prepaid insurance } & 1,200 \\\hline \text { Decrease in account payable } & 3,800 \\\hline \text { Increase in income taxes payable } & 1,200 \\\hline \text { Increase in dividends payable } & 850 \\\hline\end{array}$ ​
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Functionalists

In psychology, theorists who focus on how mental and behavioral processes function—how they enable the organism to adapt, survive, and flourish.

Consciousness

The state or quality of awareness, or, of being aware of an external object or something within oneself.

Useful Purpose

A goal or outcome that serves an advantageous function or satisfies a need.

Behaviourism

A school of psychology that focuses on observable behavior rather than mental states, emphasizing the environmental influences on behavior.