Fudnuddler Corp Indirect method Operating Cash Flows 2011
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The income statement and selected balance sheet information for Fudnuddler Corporation for the year ended December 31, 2011 is presented below.
Income Statement
Sales Revenue $300,000
Expenses:
Cost of Goods Sold 180,000
Depreciation Expense 20,000
Salaries Expense 30,000
Rent Expense 12,000
Insurance Expense 12,000
Interest Expense 11,000
Utilities Expense 10,000
Net Income $25,000
Selected Balance Sheet Accounts
2010 2011
Accounts receivables 15,000 10,000
Merchandise Inventory 20,000 22,000
Prepaid rent 1,000 0
Accounts Payable 11,000 14,000
Salaries Payable 2,000 3,000
Prepare the cash flows from operating activities section of the 2011 statement of cash flows using the indirect method.
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Solution Summary
Your tutorial gives you instruction to help you figure out if the reconciling item adds or reduces Net Income to get to Operating Cash Flows.
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