Prepare the operating activities section of the cash flow

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Problem 1: Falcons Limited reported net earnings of $285,000 for the current year. Depreciation expense recorded on buildings and equipment amounted to $92,000 for the year. Balances of the current assets and current liabilities accounts at the beginning and end of the year are as below. Prepare the operating activities section of the cash flow statement using the indirect method

                                   Beginning of year                 End of year Difference

Cash                             $15,000                           $20,000
Trade receivables            22,500                         16,500
Inventories                  57,000                            52,000
Prepaid expenses          4,000                          8,500
Trade payables            18,000                       14,000
Income taxes payable      900                      1,200

Reference no: EM132710219

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