Calculate cash from operating activities-indirect method. (LO 5)
The information shown is from the comparative balance sheets of M&S Record Company at December 31,2007 and 2006.
|
(in thousands) |
||
|
Current assets: |
||
|
Cash |
$3,000 |
52,490 |
|
Accounts receivable |
2,325 |
1,700 |
|
Inventory |
2,150 |
1,380 |
|
Prepaid rent |
320 |
270 |
|
Total current assets |
$7,795 |
$5,840 |
|
Current liabilities: |
||
|
Accounts payable |
$4,390 |
$4,850 |
|
Salaries payable |
$1,80 |
$ 1,050 |
|
Total current liabilities |
2,500 |
3,800 |
Net income for 2007 was $356,000. Depreciation expense of $135,00 was including the operating expenses for the year.
Required
Use the indirect method to prepare the cash from operations section of the statement of cash flows for M&S Record Company for the year ended December 31, 2001.