Operating Cash Flows: Indirect Method
Blaylock Company has provided the following partial comparativebalance sheets and the income statement for 2014.
BlaylockCompanyComparative Balance SheetsAt December 31, 2013 and 2014
2013
2014
Currentassets:
Accounts receivable
$340,000
$281,250
Inventories
125,000
150,000
Currentliabilities:
Wages payable
$300,000
$237,500
BlaylockCompanyIncome StatementFor the Year Ended December 31, 2014
Revenues
$1,200,000
Gain on sale of equipment
50,000
Less: Cost of goods sold
(650,000)
Less: Depreciation expense
(125,000)
Less: Interest expense
(25,000)
Netincome
$ 450,000
Required:
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Compute operating cash flows using the indirect method. Use aminus sign to indicate any decreases in cash or cash outflows.
Blaylock Company
Cash Flows from Operating Activities
For the Year Ended December 31, 2014
Net income
$
Add (deduct) adjusting items:
Net cash from operating activities
$
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Question 2 of 6
19Cornerstone Exercise 15-19 Algorithmic
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