Reference no: EM132319070

Question

Case A Case B
                                          Yr2       Yr1         Yr2     Yr1

sales rev                              10500    6500      20500   15500

Cost of Good Sold                  5550     3500       11550   9050

Gross Profit                          4,950     3,000      8,950   6,450

Depreciation Expense             1,000    1,000       1,250   1,250

Salaries and Wages Expense    2,000    1,500      4,500   4,500

Net Income                          1,950    500         3,200   700

Accounts Receivable              275      350          700     575

Inventory                             725      450         705     750

Accounts Payable                  750      675         850     920

Salaries and Wages Payable     975      1,150      325     400

Show the operating activities section of the statement of cash flows for year 2 using the indirect method. Deductions should be noted with minus sign.

I've tried all of yr2 values just plugging them into to X positions and that didn't work. I'm not sure if they need to be positive or if I'm just completely off base. Please show me how to get these values. Thanks

                                          Case A     Case B

Net Income                           $1950      $3200

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities

Depreciation Expense               $1,000   $1,250

Changes in Assets and Liabilities

Accounts Receivable                     X          X

Inventory                                    x           x

Salaries and Wages Payable           X           X

Salaries and Wages Expense          X            X

Net Cash Provided by Operating Activities