The Net Income Reported on an Income Statement for the Current

question 69

Essay

The net income reported on an 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:

Acres

A unit of area, primarily used in the United States, equal to 43,560 square feet or approximately 4,047 square meters.

Stem-and-Leaf Display

A graphical method of displaying numerical data, where each number is divided into a stem (the leading digit(s)) and a leaf (the last digit).

Kilograms

A unit of mass in the International System of Units (SI), equal to one thousand grams or approximately 2.20462 pounds.

Split Stems

A method in stem-and-leaf plots to split the stems for more refined data distribution visualization.