Ex. 169
The following information is available for Snider Company:
Receipts from customers?210,000
Dividends from share investments3,000
Proceeds from sale of equipment18,000
Proceeds from issuance of shares90,000
Payments for goods100,000
Payments for operating expenses75,000
Interest paid5,000
Taxes paid4,000
Dividends paid20,000
Instructions
Based on the preceding information, compute the net cash provided by operating activities.
Ex. 170
Pierce Company reported net income of $160,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of YearBeginning of Year
Prepaid expenses$ 9,500$ 5,000
Inventories55,00065,000
Accounts receivable24,00032,000
Cash20,00015,000
Accounts payable12,00018,000
Income taxes payable1,6001,200
Instructions
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.