The accounting records of Mid West Corporation reveal the following:
Requirement 1. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
To go from net income to cash flow from operations, we must make some adjustments to net income on the statement of cash flows. These additions and subtractions follow net income and are labeled Adjustments to reconcile net income to net cash provided by (used for) operating activities.
The statement of cash flowslong dashindirect methodlong dashbegins with net income because revenues and expenses, which affect net income, produce cash receipts and cash payments. Revenues bring in cash receipts and expenses must be paid. But the cash flows don't always equal the revenues and the expenses.
Begin by entering net income.
Thanks
Requirement 1. Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.
To go from net income to cash flow from operations, we must make some adjustments to net income on the statement of cash flows. These additions and subtractions follow net income and are labeled Adjustments to reconcile net income to net cash provided by (used for) operating activities.
The statement of cash flowslong dashindirect methodlong dashbegins with net income because revenues and expenses, which affect net income, produce cash receipts and cash payments. Revenues bring in cash receipts and expenses must be paid. But the cash flows don't always equal the revenues and the expenses.
Begin by entering net income.
Thanks
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