Question: Refer to the information about Bekham Company in Exercise. Use the direct method to prepare only the cash provided or used by operating activities section of the statement of cash flows for this company
Exercise: Use the following income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method.
Changes in current asset and current liability accounts for the year that relate to operations follow:
Accounts receivable . . . . . . . . . . $40,500 increase
Accounts payable . . . . . . . . . . . .$13,500
decrease Merchandise inventory . . . . . . . . 27,000
increase Salaries payable . . . . . . . . . 4,500 decrease