Pella Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Pella’s 2017 and 2016 year-end balance sheets:
Account Title 2017 2016
Accounts receivable……………… $24,000…… $21,000
Prepaid rent…………………………. 1,650……… 1,900
Interest receivable…………………….. 900……… 1,200
Accounts payable………………….. 10,200……… 8,500
Salaries payable…………………….. 2,700………. 2,900
Unearned revenue…………………… 2,000……… 1,800
The income statement reported a $700 loss on the sale of equipment, a $900 gain on the sale of land, and $2,500 of depreciation expense. Net income for the period was $36,500.
Required
Prepare the operating activities section of the statement of cash flows.
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