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19 August, 16:00

Macrosoft Company reports net income of $59,000. The accounting records reveal depreciation expense of $74,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $54,000, $10,000, and $15,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method.

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  1. 19 August, 16:30
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    Cash flow from Operations Amount in $

    Net income 59,000

    Depreciation expense 74,000

    Increase in prepaid rent (54,000)

    Increase in accounts payable 10,000

    Increase in income tax payable 15,000

    Net cash flows from operations 104,000

    Explanation:

    Information given about Macrosoft Company

    Net income = $59,000

    Depreciation expense = $74,000

    Prepaid rent = $54,000

    Accounts payable = $10,000

    Income tax payable = $15,000

    Cash flow from Operations Amount in $

    Net income 59,000

    Depreciation expense 74,000

    Increase in prepaid rent (54,000)

    Increase in accounts payable 10,000

    Increase in income tax payable 15,000

    Net cash flows from operations 104,000
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