Make the cash flows from the operating activities

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Question - Lulu Zola Company reported net income of $200,000.00 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000.00 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

 

End of Year

Beginning of Year

Cash

$20,000.00

$15,000.00

Accounts receivable

24,000.00

32,000.00

Inventories

50,000.00

65,000.00

Prepaid expenses

7,500.00

5,000.00

Accounts payable

12,000.00

18,000.00

Income taxes payable

1,600.00

1,200.00

Required - Make the cash flows from the operating activities section of the statement of cash flows using the indirect method.

Reference no: EM132820816

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