Prepare the operating activities section of the statement of cash flows using the indirect method.Note: Amounts to be deducted should be indicated with a minus sign.Statement of Cash Flows (partial)Cash flows from operating activities-indirect methodAdjustments to reconcile net income to net cash provided by operating activitiesIncome statement items not affecting cashChanges in current assets and liabilities0 Arundel Company disclosed the following information for its recent calendar year.Selected Year-End Balance Sheet DataAccounts receivable decreasePurchased a machine for cashSalaries payable increaseInterest payable decreaseIncome Statement DataRevenuesExpenses:Salaries expenseUtilities expenseDepreciation expenseInterest expenseNet loss$ 100,00084,00014,00014,6003,400$ (16,000)$ 24,00010,00018,0008,000

The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Arundel Company disclosed the following information for its recent calendar year. Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash Salaries payable increase Interest payable decrease Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Interest expense Net loss $ 100,000 84,000 14,000 14,600 3,400 $ (16,000) $ 24,000 10,000 18,000 8,000

Arundel Company disclosed the following information for its recent calendar year. Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash Salaries payable increase Interest payable decrease Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Interest expense Net loss $ 100,000 84,000 14,000 14,600 3,400 $ (16,000) $ 24,000 10,000 18,000 8,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23A: Statement Of Cash Flows: The Direct Method

Section: Chapter Questions

Problem 2RQ

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