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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 23
Operating Cash Flows
The income statement for Piura Merchandising Corporation is as follows:
Other information is as follows:
a. Accounts payable decreased by $20,000 during the year.
b. Accounts receivable increased by $20,000.
c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.
d. Prepaid insurance increased by $24,000 during the year.
Refer to the information for Piura Merchandising Corporation above.
Required:
Prepare a schedule that provides the operating cash flows for the year using the indirect method.
The income statement for Piura Merchandising Corporation is as follows:
Other information is as follows:
a. Accounts payable decreased by $20,000 during the year.
b. Accounts receivable increased by $20,000.
c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.
d. Prepaid insurance increased by $24,000 during the year.
Refer to the information for Piura Merchandising Corporation above.
Required:
Prepare a schedule that provides the operating cash flows for the year using the indirect method.
Explanation
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Operating cash flows:
Operating activit...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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