The Net Income Reported on the Income Statement for the Current

question 53

Essay

The net income reported on the income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $20,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. $\begin{array}{lrr}&\text { End } & \text { Beginning } \\\text { Cash } & \$ 65,000 & \$ 70,000 \\\text { Accounts receivable (net) } & 70,000 & 63,000 \\\text { Inventories } & 85,000 & 102,000 \\\text { Prepaid expenses } & 4,000 & 4,500 \\\text { Accounts payable (merchandise creditors) } & 50,000 & 58,000 \\\text { Cash dividends payable } & 4,500 & 6,500 \\\text { Sal aries payable } & 6,000 & 7,500\end{array}$

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Definitions:

Intraocular Pressure

The fluid pressure inside the eye, important for maintaining the shape of the eye and the health of eye tissues.

Extraocular Muscles

The muscles surrounding the eyeball that enable it to move in different directions and maintain its position within the socket.

Presbyopia

A natural, age-related loss of the eyes' ability to focus on close objects, typically beginning in mid to late adulthood.

Lens Elasticity

The ability of the lens in the eye to change shape to focus on objects at various distances; it tends to decrease with age.