E9-11A. Calculate cash from operating activities using the indirect method. (LO 5)
The following information was taken from Tram Inc.’s balance sheets at December 3 1, 2005 and 2006. Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2006, using the indirect method.
|
2006 |
2005 |
|
|
Current assets |
||
|
Cash |
$103,000 |
$99,000 |
|
Accounts receivable |
90,000 |
79,000 |
|
Inventory |
150,000 |
142,000 |
|
Prepaid expenses |
47,000 |
50,000 |
|
Total current assets |
$390,000 |
$370,000 |
|
Current liabilities |
||
|
Accrued expenses payable |
$ 17,000 |
$ 15,000 |
|
Accounts payable |
60,000 |
92,000 |
|
Total current liabilities |
$ 77,000 |
$107,000 |
Net income for 2006 was $ 1 85,000. Depreciation expense was $25,000.