Asked by Natalee Hines on May 09, 2024
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Hill Company reported net income of $10,000 for the year ended December 31,2019.Additional 2019 information is as follows:
Prepare the operating activities section of the statement of cash flows using the indirect method for the year ended December 31,2019.
Operating Activities
Refers to the primary day-to-day activities of a business related to its production, sale, and delivery of goods and services, impacting the cash flow from operations.
Indirect Method
A method of reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.
Net Income
The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.
- Familiarize yourself with the approach to generate a statement of cash flows by employing the indirect method.
- Apply knowledge about economic activities linked to operational endeavors.
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Learning Objectives
- Familiarize yourself with the approach to generate a statement of cash flows by employing the indirect method.
- Apply knowledge about economic activities linked to operational endeavors.
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