Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 80,000 Accounts receivable increase $ 8,000 Expenses: Inventory decrease 3,000 Cost of goods sold 38,000 Salaries payable increase 700 Salaries expense 12,000 Depreciation expense 7,000 Net income $ 23,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Question

Douglas Mccormick

Business

10 September, 11:52

Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 80,000 Accounts receivable increase $ 8,000 Expenses: Inventory decrease 3,000 Cost of goods sold 38,000 Salaries payable increase 700 Salaries expense 12,000 Depreciation expense 7,000 Net income $ 23,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

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Karina Morton · Answer 1

Cash Flow From Operating Activities indicate the amount of cash and income that a company get from its ongoing day to day and regular business activities.

Operating activities from Hampton Company reports are Net income, Depreciation, Accounts receivable increase, Inventory decrease, Salaries payable increase

Cash flows from operating activities using the Indirect method

Net income 23,000

Depreciation 7,000

Accounts receivable increase - 8,000

Inventory decrease 3,000

Salaries payable increase 700

Net cash provided by $25,700

operating activities