Prepare the operating activities section of the statement


Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's 2017 and 2016 year-end balance sheets:

ACCOUNT TITLE                                               2017                                             2016

Accounts receivable                                     $ 36,000                                     $ 37,200

Prepaid rent                                                         2,400                                           1,800

Interest receivable                                                 600                                             400

Accounts payable                                                9,300                                       10,400

Salaries payable                                                   4,500                                        5,200

Unearned revenue                                                3,600                                        5,400

The income statement reported a $ 1,500 gain on the sale of equipment and $ 800 on the sale of land and $ 3,600 depreciation expense. Net income for the period was $ 47,300 

REQUIRED

Prepare the operating activities section  of the statement of cash flows.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Prepare the operating activities section of the statement
Reference No:- TGS02574674

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)