Acc206 Principles of Accounting: E14-16 The accounting records of DVD Sales, Inc.

Acc206 Principles of Accounting

E14-16 Computing operating activities cash flow - indirect method [15-20 min]
The accounting records of DVD Sales, Inc. include the following accounts: Cash
1-Jul 5,500
????
31-Jul 3,000


Accounts Receivable
1-Jul 21,000
????
31-Jul 17,000


Inventory
1-Jul 22,000
????
31-Jul 25,500


Accounts payable
1-Jul 14,500
????
31-Jul 19,500


Accumulated depr.-equipment
1-Jul 55,000
Depr 3,000
31-Jul 58,000


Retained earnings
1-Jul 65,000
Dividend 19,000 Net Inc 65,000
31-Jul 111,000

Requirement:
1. Compute DVD’s net cash provided by (used for) operating activities during July. Use the indirect method.
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