P9-3B. Calculate cash from operating activities using the indirect method (LO5)
The information shown comes from the balance sheets of Walker Corporation at September 30, 2008 and 2007.
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Walker Corporation |
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2008 |
2007 |
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(in thousands) |
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Current assets: |
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Cash |
$2,110 |
$1,650 |
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Accounts receivable |
1,254 |
1,977 |
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Inventory |
700 |
656 |
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Prepaid insurance |
157 |
314 |
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Total current assets |
$4,221 |
$4,597 |
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Current liabilities: |
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Accounts payable |
$2,000 |
$2,330 |
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Wages payable |
1,154 |
750 |
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Total current liabilities |
$3,154 |
$3,080 |
Net income for the year ended September 30, 2008, was $146,000. Included in the operating expenses for the year was depreciation expense of $11 2,000.
Required
Prepare the cash from operating activities section of Walker Corporation’s statement of cash flows for the year ended September 30, 2008. Use the indirect method.