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    Jfredricks33's Avatar
    Jfredricks33 Posts: 14, Reputation: 1
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    #1

    Feb 17, 2013, 10:46 AM
    Operating Section: Statement of Cash Flows
    The following describes the changes in beginning and ending balance sheet accounts:
    Inventory 1500 +
    Prepaid Insurance 4100 -
    Investments 2600-
    Equipment 12000+
    Accum. Depreciation 1400+
    Interest Payable 1100+
    Note Payable 7300-
    Unearned Revenue 5000+
    Mortgage Payable 6000+
    Common Stock 15000+

    Additional Information:
    Net Income was $29000 and includes a $700 gain from sale of Investments. Dividends declared and paid totaled $11000.

    What is the cash provided by/used by the operating section?

    MY ANSWER:
    Net Income 29000
    Increase in inventory (1500)
    Decrease in prepaid insurance (4100)
    Increase in depreciation expense 1400
    Increase in interest payable 1100
    Decrease in N/P (7300)
    Increase in unearned revenue 5000
    Gain on sale of investments (700)

    Cash Provided by operating activities = $22,900

    Am I correct? Thanks!
    Jfredricks33's Avatar
    Jfredricks33 Posts: 14, Reputation: 1
    New Member
    		  
    #2

    Feb 17, 2013, 04:35 PM
    A simple yes or no would do...
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