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In: Accounting

q.24 The accounting records of Harrison Company provided the data below.    Net loss $ 11,900...

q.24

The accounting records of Harrison Company provided the data below.
  

Net loss $ 11,900
Depreciation expense 13,900
Increase in salaries payable 2,900
Decrease in accounts receivable 5,900
Increase in inventory 6,700
Amortization of patent 890
Decrease in discount on bonds 690


Required:
Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

  

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Expert Solution

Answer:

Cash Flows from Operating Activities:
Net Loss - 11900
Adjustments for non cash effects:  
Depreciation expense    13900
Amortization of patent          890
Decrease in discount on bonds          690
Changes in operating assets and liabilities:  
Increase in salaries payable      2900
Decrease in accounts receivable      5900
Increase in inventory -   6700
Net cash flows from operating activities        5680

ekkarill92 answered 2 years ago
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