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

question 5

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:

Cross-Training

A training technique in which individuals or team members learn different skills or roles to enhance versatility and understanding across functions.

Flexibility

The ability to adapt or adjust to new conditions, changes, or environments.

Extrinsic Rewards

Motivators external to the job itself, such as salary, benefits, and recognition, that influence an individual’s performance.

Valence Rewards

The perceived desirability of an outcome, motivating individuals to act in a certain way.