Seu SlideShare está sendo baixado. ×

Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio

1 de 2 Anúncio

# Dorman Company reported the following data- net income 225-000 depreci.docx

Dorman Company reported the following data:
net incomeÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  225,000
depreciation expenseÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  25,000
gain on disposal of equipmentÂ Â Â Â Â Â Â  20,500
decrease in accounts receivableÂ Â Â Â Â 14,000
decrease in account payableÂ Â Â Â Â Â Â Â Â Â Â Â 3,600
prepare cash flows from operating actvities section of the statment of cash flows using the indirect method
Solution
The following is the indirect method formula to calculate net cash flow from operating activities:

.

Dorman Company reported the following data:
net incomeÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  225,000
depreciation expenseÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  25,000
gain on disposal of equipmentÂ Â Â Â Â Â Â  20,500
decrease in accounts receivableÂ Â Â Â Â 14,000
decrease in account payableÂ Â Â Â Â Â Â Â Â Â Â Â 3,600
prepare cash flows from operating actvities section of the statment of cash flows using the indirect method
Solution
The following is the indirect method formula to calculate net cash flow from operating activities:

.

Anúncio
Anúncio

Anúncio

### Dorman Company reported the following data- net income 225-000 depreci.docx

1. 1. Dorman Company reported the following data: net incomeÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 225,000 depreciation expenseÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 25,000 gain on disposal of equipmentÂ Â Â Â Â Â Â 20,500 decrease in accounts receivableÂ Â Â Â Â 14,000 decrease in account payableÂ Â Â Â Â Â Â Â Â Â Â Â 3,600 prepare cash flows from operating actvities section of the statment of cash flows using the indirect method Solution The following is the indirect method formula to calculate net cash flow from operating activities: Cash Flows from Operating Activities: Net Income + Non-Cash Expenses: (Depreciation, Depletion & Amortization Expense) + Non-Operating Losses: (Loss on Sale of Non-Current Assets) Non-Operating Gains: (Gain on Sale of Non-Current Assets) + Decrease in Current Assets: (Accounts Receivable, Prepaid Expenses, Inventory etc.) Increase in Current Assets + Increase in Current Liabilities:
2. 2. (Accounts Payable, Accrued Liabilities, Income Tax Payable etc.) Decrease in Current Liabilities = Net Cash Flow from Operating Activities