Ask Question
11 June, 10:28

The current sections of Sandhill Co.'s balance sheets at December 31, 2021 and 2022, are presented here. Sandhill Co's net income for 2022 was $137,700. Depreciation expense was $24,300. 2022 2021 Current assets $89,100 Cash $94,500 Accounts receivable 72,000 80,100 151,200 Inventory 154,800 Prepaid expenses 24,300 19.800 $342000 $343,800 Total current assets Current liabilities Accrued expenses payable $13,500 $4,500 Accounts payable 76,500 82800 $90,000 Total current liabilities $87.300

Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method.

+4
Answers (1)
  1. 11 June, 14:11
    0
    Answer and Explanation:

    The prepartion of the net cash provided or used by operating activities section of the cash flow statement is presented below:

    Cash flows from operating activities

    Net income $137,700

    Adjustments made

    Depreciation expense $24,300

    Add: Decrease in Accounts receivable $8,100 ($72,000 - $80,100)

    Add: Decrease in inventory $3,600 ($151,200 - $154,800)

    Less: Increase in Prepaid expenses - $4,500 ($24,300 - $19,800)

    Add: Increase in accrued expenses payable $9,000 ($13,500 - $4,500)

    Less: Decrease in accounts payable - $6,300 ($76,500 - $82,800)

    Total of adjustments $34,200

    Net cash provided by operating activities $171,900

    The negative sign represents cash outflow and positive sign represents cash inflow
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The current sections of Sandhill Co.'s balance sheets at December 31, 2021 and 2022, are presented here. Sandhill Co's net income for 2022 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers