Kennedy, Inc. reported the following dа ta:

Net income $179,562

Depreciation expense 15,511

Loss on disposal of equipment 11,046

Gain on sale of building 21,801

Increase in accounts receivable 8,734

Decrease in accounts payable 3,109

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Refer to the list of Amount Descriptions 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.

Question

Walton

Business

30 September, 14:59

Kennedy, Inc. reported the following dа ta:

Net income $179,562

Depreciation expense 15,511

Loss on disposal of equipment 11,046

Gain on sale of building 21,801

Increase in accounts receivable 8,734

Decrease in accounts payable 3,109

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Refer to the list of Amount Descriptions 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.

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Answers (1)

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Itzel · Answer 1

The cash flows from operating activities section of the statement of cash flows using the indirect method is $172,475.

Explanation:

Kennedy, Inc.

Statement of cash flows (extract)

Net income $179,562

Add: Depreciation expense 15,511

Loss on disposal of equipment 11,046

Less: Gain on sale of building (21,801)

Increase in accounts receivable (8,734)

Decrease in accounts payable (3,109)

Cash flows from operating activities $172,475