Chapter 10
The Statement of Cash Flow
484
AP-3A (
2
)
The net income for the year ended on December 31, 2016 for RC Corporation was $120,000.
Additional data for the year is provided below.
Purchase of property, plant and equipment
$280,000
Depreciation of property, plant and equipment
14,000
Dividends declared
50,000
Decrease in accounts receivable
29,000
Loss on sale of equipment
13,000
Calculate the change in cash from operating activities using the indirect method.
AP-4A (
2
)
Ashe Inc. reported the following data for 2016.
Income Statement
Net Income
$30,000
Depreciation Expense
4,000
Balance Sheet
Increase in Accounts Receivable
9,000
Decrease in Accounts Payable
7,000
Calculate the increase (decrease) in cash from operating activities.
