Maryland Company Had Net Income of $21,850 for the Year

question 47

Essay

Maryland Company had net income of $21,850 for the year ended December 31,2015.Additional information from the income statement follows:
$$\begin{array} { l l } \text { Depreciation expense } & \$ 8,400 \\\text { Intersit expense } & 3,900 \\\text { Income tax expense } & 5,700\end{array}$$
The company also reported the following balances:
$$\begin{array} { l l l } & \text { December } & \text { December } \\& \mathbf { 3 1 , 2 0 1 4 } & \mathbf { 3 1 , 2 0 1 5 } \\\text { Accounts receivable } & \$ 10,000 & \$ 11 , \mathrm {~B} 00 \\\text { Accounts payable } & \$ 20,000 & \$ 23,200 \\\text { Income taxes payable } & \$ 22,000 & \$ 21,300 \\\text { Inventory } & \$ 30,000 & \$ 25,000\end{array}$$
Required:
Prepare the operating activities section of the statement of cash flows for the year ended December 31,2015.Use the indirect method.

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Definitions:

Fast Pathway

This refers to a rapid neural response mechanism, often discussed in the context of pain perception, where sensory information bypasses slower processing routes to elicit quick reactions.

Slow Pathway

A term often used in cardiac electrophysiology to refer to a conduction pathway in the heart that has a slower impulse transmission.

Vestibular Sense

The sensory system that contributes to balance and spatial orientation by detecting motion and gravity.

Kinesthetic Sense

The sense of body position and movement, allowing individuals to coordinate their movements accurately.