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The three accounts shown below appear in the general ledger

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The three accounts shown below appear in the general ledger 1 Wayne Company reported net income of $265,000 for 2014. Wayne also reported depreciation expense of $45,000 and a loss of $8,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $6,000 decrease in prepaid expenses. Instructions Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method. 2 The three accounts shown below appear in the general ledger of Larson Corp. during 2014. Equipment Date Debit Credit Balance Jan. 1 Balance 160,000 July 31 Purchase of equipment 75,000 235,000 Sept. 2 Cost of equipment constructed 56,000 291,000 Nov. 10 Cost of equipment sold 45,000 246,000 Accumulated Depreciation—Equipment Date Debit Credit Balance Jan. 1 Balance 71,000 Nov. 10 Accumulated depreciation on equipment sold 30,000 41,000 Dec. 31 Depreciation for year 20,000 61,000   Retained Equipment Date Debit Credit Balance Jan. 1 Balance 105,000 Aug. 23 Dividends (cash) 15,000 90,000 Dec. 31 Net income 50,000 140,000 Instructions From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $7,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $58,000.) Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

The three accounts shown below appear in the general ledger

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