Prepare the cash flow from the operating activities

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Question - Harrell Company reported net income of $320,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 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

$22,000

$15,000

Accounts receivable

17,000

32,000

Inventories

55,000

65,000

Prepaid expense

7,500

5,0000

Accounts Receivable

11,000

18,000

Income taxes payable

600

1,200

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

Reference no: EM133056668

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