3 ok B ces Exercise 12 4A Algo Use the direct method to

Last updated: 4/27/2023

3 ok B ces Exercise 12 4A Algo Use the direct method to determine cash flows from operating activities LO 12 2 The following accounts and corresponding balances were drawn from Avia Company s Year 2 and Year 1 year end balance sheets Year 1 3 800 2 440 Account Title Unearned revenue Prepaid rent During the year 68 000 of unearned revenue was recognized as having been earned Rent expense for Year 2 was 25 000 Required Based on this information alone prepare the operating activities section of the statement of cash flows assuming the direct approach Is used Amounts to be deducted should be Indicated with a minus sign Cash flow from operating activities Net cash flow from operating activities Year 2 7 600 1 750 0