f14StatementofCashFlowsBusiness(公司金融会计).ppt

Determine the debit or credit change of each item above. Changes in Current Accounts Change Accounts 2003 2002 Debit Credit Trade receivables (net) $74,000 $65,000 Inventories 172,000 180,000 Accounts payable (mdse.) 43,500 46,700 Accrued expenses payable 26,500 24,300 Income taxes payable 7,900 8,400 9,000 8,000 3,200 2,200 500 Changes in Current Accounts Change Accounts 2003 2002 Debit Credit Trade receivables (net) $74,000 $65,000 Inventories 172,000 180,000 Accounts payable (mdse.) 43,500 46,700 Accrued expenses payable 26,500 24,300 Income taxes payable 7,900 8,400 9,000 8,000 3,200 2,200 500 These debit changes are subtracted from net income in the operating activities section of the statement of cash flows. Think of these debits as deductions from net income in arriving at net cash flow from operations. Changes in Current Accounts Change Accounts 2003 2002 Debit Credit Trade receivables (net) $74,000 $65,000 Inventories 172,000 180,000 Accounts payable (mdse.) 43,500 46,700 Accrued expenses payable 26,500 24,300 Income taxes payable 7,900 8,400 9,000 8,000 3,200 2,200 500 These credit changes are added to net income in the operating activities section of the statement of cash flows. Think of these credits as additions to net income in arriving at net cash flow from operations. Cash flows from operating activities: Operating Activities – Indirect Method Start with the accrual basis net income shown on the income statement. Net income, per income statement $108,000 Depreciation $ 7,000 Decrease in inventories 8,000 Increase in accrued expenses 2,200 17,200 $125,200 Increase in accounts receivables $ 9,000 Decrease in accounts payable 3,200 Decrease in income taxes payable 500 Gain on sale of land 12,000 24,700 Net cash flow from operating activities $100,500 Deduct: Add: Cash flows from operating activities: Operating Activities – Indirect Method Because depreciat