Assignment
The Prince Company reported net income of $260,000 for the current year. Depreciation recorded on buildings and equipment amounted to $90,000 for the year. Balances of the current asset and current liability accounts for 20X0 and 20X1 are as follows:
|
|
20X1
|
20X0
|
|
Cash
|
$20,000
|
$15,000
|
|
Accounts receivable
|
19,000
|
32,000
|
|
Inventories
|
50,000
|
65,000
|
|
Prepaid expenses
|
7,500
|
5,000
|
|
Accounts payable
|
12,000
|
18,000
|
|
Income taxes payable
|
1,600
|
1,200
|
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Amounts to be subtracted should be indicated by a minus sign.