E9-11B. Calculate cash from operating activities using the indirect method. (LO 5 )
The following information was taken from Fix-It Company’s balance sheets at June 30, 2O0i and.2008. Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended June 30, 2008′ using the indirect method.
|
2008 |
2007 |
|
|
Current assets |
||
|
Cash |
$105,000 |
$ 95,000 |
|
Accounts receivable |
80,000 |
89,000 |
|
Inventory |
210,000 |
188,000 |
|
Prepaid expenses |
53,000 |
45,000 |
|
Total current assets |
$448,000 |
$417,000 |
|
Current liabilities |
||
|
Accrued expenses payable |
85,000 |
$ 22,000 |
|
Accounts payable |
$ 18,000 |
63,000 |
|
Total current liabilities |
$103,000 |
$85,000 |
Net income for the year ended June 30, 2008 was $215,000. Depreciation expense was $30,500.