P9-3A. Calculate cash from operating activities using the indirect method. (LO 5)
The information shown comes from the balance sheets of TCB Company at June 30, 2008 and 2007.
|
TCB Company |
||
|
(in thousands) |
2008 |
2007 |
|
Current assets: |
||
|
Cash |
$2,11 0 |
$2,6s0 |
|
Accounts receivable |
1,254 |
977 |
|
Inventory |
730 |
856 |
|
Prepaid insurance |
127 |
114 |
|
Total current assets |
$4221 |
$4597 |
|
Current liabilities: |
||
|
Accounts payable |
$1,054 |
$1,330 |
|
Wages payable |
2,100 |
1,750 |
|
Total current liabilities |
$3154 |
$3,080 |
Net income for the year ended June 30, 2008, was $86,900. Included in the operating expenses of the year was depreciation expense of $102,000.
Required
Prepare the cash from operating activities section of TCB Company’s statement of cash flows for the year ended June 30, 2008. Use the indirect method.