Salud Company reports the following information. Use the indirect method to prep

Question

Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.) Selected 2017 Income Statement Data Net income Depreciation expense Gain on sale of machinery $470,000 Accounts receivable increase 97,500 Prepaid expenses decrease 23,600 Accounts payable increase Selected Year-End 2017 Balance Sheet Data $42,000 15,900 8,200 2,200 Wages payable decrease Cash flows from operating activities Adjustments to reconcile net income to operating cash flow

Explanation / Answer

the following is the cash flow from operating activities section:

note:

in finding out cash flow from operating activities increase in current assets should be deducted from net income and vice versa.

increase in current liabilities should be added to net income and vice versa.

cash flow from operating activities: net income 470,000 adjustments to reconcile net income to operating cash flow depreciation 97,500 accounts receivable increase (42,000) prepaid expense decrease 15,900 accounts payable increase 8,200 wages payable decrease (2,200) gain on sale of machinery (23,600) 53,800 net cash provided by operating activities 523,800

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.