The Net Income Reported on the Income Statement for the Current

question 137

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.

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Definitions:

Personal Lifestyles

Refer to an individual's way of living as reflected in their activities, interests, and opinions.

Laggard

An individual or group that is slow to adopt new technologies, innovations, or trends, often the last in a population to do so.

Diffusion of Innovation

A theory that explains how, why, and at what rate new ideas and technology spread through cultures and societies.

Pioneer Product

The first product of its kind to be launched in the market by a company, often opening new categories.