Question

Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the Year Ended December 31, 2024 Net sales $710,000 Expenses: Cost of goods sold $420,000 Operating expenses 130,000 Depreciation expense 33,000 Income tax expense 49,000 Total expenses 632,000 Net income $ 78,000 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2024, compared to December 31, 2023 Decrease in accounts receivable $10,000 Decrease in inventory 13,000 Increase in prepaid rent 3,000 Decrease in salaries payable 4,000 Increase in accounts payable 7,000 Increase in income tax payable 8,000 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) SOFTWARE ASSOCIATES Statement of Cash Flows (partial) For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities $ 0

          Portions of the financial statements for Software Associates are provided below.
SOFTWARE ASSOCIATES
Income Statement
For the Year Ended December 31, 2024
Net sales
$710,000
Expenses:
Cost of goods sold
$420,000
Operating expenses
130,000
Depreciation expense
33,000
Income tax expense
49,000
Total expenses
632,000
Net income
$ 78,000
SOFTWARE ASSOCIATES
Selected Balance Sheet Data
December 31, 2024, compared to December 31, 2023
Decrease in accounts receivable
$10,000
Decrease in inventory
13,000
Increase in prepaid rent
3,000
Decrease in salaries payable
4,000
Increase in accounts payable
7,000
Increase in income tax payable
8,000
Required:
Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method. (List cash
outflows and any decrease in cash as negative amounts.)
SOFTWARE ASSOCIATES
Statement of Cash Flows (partial)
For the Year Ended December 31, 2024
Cash Flows from Operating Activities:
Adjustments to reconcile net income to net cash flows from operating activities:
Net cash flows from operating activities
$ 0

Portions of the financial statements for Software Associates are provided below.
SOFTWARE ASSOCIATES
Income Statement
For the Year Ended December 31, 2024
Net sales
710,000
Expenses:
Cost of goods sold420,000
Operating expenses
130,000
Depreciation expense
33,000
Income tax expense
49,000
Total expenses
632,000
Net income
78,000
SOFTWARE ASSOCIATES
Selected Balance Sheet Data
December 31, 2024, compared to December 31, 2023
Decrease in accounts receivable10,000
Decrease in inventory
13,000
Increase in prepaid rent
3,000
Decrease in salaries payable
4,000
Increase in accounts payable
7,000
Increase in income tax payable
8,000
Required:
Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method. (List cash
outflows and any decrease in cash as negative amounts.)
SOFTWARE ASSOCIATES
Statement of Cash Flows (partial)
For the Year Ended December 31, 2024
Cash Flows from Operating Activities:
Adjustments to reconcile net income to net cash flows from operating activities:
Net cash flows from operating activities
0

Added by Shelley V.

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