[Determined CPA]

Q:

AR increases $6,000

Allowance for uncollectible accounts increases $200

Prepd rent expense decreases $4200

AP increases $3000

NI was $150000

what should be included in net cash provided by operating activities in the stmt of cash flows?

A: $151,400

NI $150000

inc in AR (6000)

inc in allow 200

dec in prepd 4200

inc in AP 3000

total 151,400

on page 34-35 in Becker F7 i thought a decrease in prepaid gets subtracted and increase in AP gets subtracted?

what am i missing?!

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Determined CPA]

Nevermind – i think i was trying to answer this question using the direct method but i guess it wanted the indirect method…

if the question doesn't specify do you always assume the indirect method?

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Anonymous]

My $.02: Since they didn't specify a method (or call out cash -> accrual / accrual -> cash) but instead provided NI that would indicate for me to use Indirect.

[Author]

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