Changes in various accounts and gains and losses on the sale of assets during the year for Argon Companyare given below:Item AmountAccounts receivable ............................... $90,000 decreaseAccrued interest receivable ................... $4,000 increaseInventory ................................................ $120,000 increasePrepaid expenses .................................. $3,000 decreaseAccounts payable ................................... $65,000 decreaseAccrued liabilities ................................... $8,000 increaseDeferred income taxes payable ............. $12,000 increaseSale of equipment .................................. $7,000 gainSale of long-term investments ............... $10,000 lossRequired:Prepare an answer sheet using the following column headings:Item Amount Add DeductFor each item, place an X in the Add or Deduct column to indicate whether the dollar amount should beadded to or deducted from net income under the indirect method when computing the net cash provided byoperating activities for the year
Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company
are given below:
Item Amount
Accounts receivable ............................... $90,000 decrease
Accrued interest receivable ................... $4,000 increase
Inventory ................................................ $120,000 increase
Prepaid expenses .................................. $3,000 decrease
Accounts payable ................................... $65,000 decrease
Accrued liabilities ................................... $8,000 increase
Deferred income taxes payable ............. $12,000 increase
Sale of equipment .................................. $7,000 gain
Sale of long-term investments ............... $10,000 loss
Required:
Prepare an answer sheet using the following column headings:
Item Amount Add Deduct
For each item, place an X in the Add or Deduct column to indicate whether the dollar amount should be
added to or deducted from net income under the indirect method when computing the net cash provided by
operating activities for the year
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