Name: Date:
Instructor: Course:
P12-5B, Prepare the operating activities section—indirect method.
The income statement of Zamora Inc. reported the following condensed information.
ZAMORA INC.
Income Statement
For the Year Ended December 31, 2012
Revenues $560,000
Operating expenses 400,000
Income from operations 160,000
Income tax expense 47,000
Net income $113,000
Zamora’s balance sheet contained these comparative data at December 31.
2012 2011
Accounts receivable $60,000 $75,000
Accounts payable 35,000 48,000
Income taxes payable 14,000 6,000
Zamora has no depreciable assets. Accounts payable pertain to operating expenses.
Instructions:
Prepare the operating activities section of the statement of cash flows using the indirect method.
ZAMORA INC.
Partial Statement of Cash Flows
For the Year Ended December 31, 2012
Cash flows from operating activities
Title Amount
Title Amount
Title Amount
Title Amount Formula
Title Formula
Financial Accounting, Sixth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse
Adjustments to reconcile net income to net cash
provided by operating activities