Question

Staley Inc. reported the following data:

Net income $396,200
Depreciation expense 61,250
Loss on disposal of equipment 27,600
Increase in accounts receivable 9,000
Increase in accounts payable 3,350
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
Staley Inc.
Statement of Cash Flows (partial)
1 Cash flows from operating activities:
2
3 Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6 Changes in current operating assets and liabilities:
7
8
9

Answer 1

The cash flows from operating activities is $479,400.

Step-by-step explanation:

Staley Inc.

Statement of Cash Flows (partial)

Cash flows from operating activities:

Adjustments to reconcile net income to net cash flow from operating activities:

Net income $396,200

Add: Depreciation expense 61,250

Loss on disposal of equipment 27,600

Changes in current operating assets and liabilities:

Less: Increase in accounts receivable 9,000

Add: Increase in accounts payable 3,350

Cash flows from operating activities: $479,400