Question

The independent cases are listed below includes all balance sheet accounts related to operating activities:
Case A Case B Case C
Net income $314,000 $17,000 $424,000
Depreciation expense 44,000 154,000 84,000
Accounts receivable
increase (decrease) 108,000 (204,000) (24,000)
Inventory increase
(decrease) (54,000) 39,000 54,000
Accounts payable
increase (decrease) (54,000) 124,000 74,000
Accrued liabilities
increase (decrease) 64,000 (224,000 ) (44,000)
Show the operating activities section of cash flows for each of the given cases.

Answer 1

Answer:

                         Cash Flow from Operating Activities  

                                                                    Case A       Case B     Case C

Net Income                                                $314,000   $17,000   $424,000

Adjustments to Reconcile Net income to

Net cash provided by Operating Activities

Depreciation                                               $44,000   $154,000  $84,000  

Changes in Assets and Liabilities  

Accounts Receivable                                -$108,000  $204,000  $24,000  

Inventory                                                     $54,000   -$39,000   -$54,000

Accounts Payable                                     -$54,000    $124,000   $74,000

Accrued Liabilities                                      $64,000  -$224,000  -$44,000

Net cash under Operating Activities           $0         $236,000  $508,000