The current sections of Pearl Corp.\'s balance sheets at December 31,2016 and 20

Question

The current sections of Pearl Corp.'s balance sheets at December 31,2016 and 2017,are presented here. Pearl Corp.'s net income for 2017 was $ 157,437. Depreciation expense was $27,783. 2017 2016 Current assets $108,045 82,320 172,872 27,783 $391,020 101,871 91,581 176,988 22,638 $393,078 Cash Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accrued expenses payable Accounts payable $ 15,435 87,465 $102,900 $ 5,145 94,668 99,813 Total current liabilities repare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year nded December 31,2017, using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g 15,000 or in parenthesis e.g. (15,000).)

Explanation / Answer

Cash flow from operating activities is calculated as below:

Net income $157437

Add: Depreciation $27783

Adjustment for changes in working capital:

Add: Decrease in accounts receivable $9261

Decrease in inventory $4116

Increase in accrued expenses payable $10290

Less: Increase in prepaid expenses ($5145)

Decrease in accounts payable ($7203)

Cash flow from operating activities $196539

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