. Advertisement .
..3..
. Advertisement .
..4..
Hampton Company reports the following information for its recent calendar year.
| Income Statement Data | Selected Year-End Balance Sheet Data | ||||||
| Sales | $ | 72,000 | Accounts receivable increase | $ | 6,000 | ||
| Expenses | Inventory decrease | 3,000 | |||||
| Cost of goods sold | 40,000 | Salaries payable increase | 1,000 | ||||
| Salaries expense | 10,000 | ||||||
| Depreciation expense | 7,000 | ||||||
| Net income | $ | 15,000 | |||||
Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
|
♦ Relevant knowledge
The cash flow statement examines the cash-related activities of the company over an elapsed time. The transactions are divided into three sections including investing, operating and financing.
1 Answer