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, 2015. (Amounts to be deducted should be indicated with a minus sign.) Selected 2015 Income Statement Data Selected Year-End 2015 Balance Sheet Data Net income $485,000 Accounts receivable increase $47,200 Depreciation expense 90,000 Prepaid expenses decrease 16,200 Gain on sale of machinery 25,700 Accounts payable increase 6,000 Wages payable decrease. 4,000 cash flows from operating activities adjustments to reconciliate net incomes to operatin cash flows

Explanation / Answer

Cash flow Statement ( Indirect Method) Cash flow from operating Activities Amount$ Net Income 485000 Adjustment for Depreciation expense 90000 Gain on sale of machinery -25700 Adjusted Profit 64300 Cash flow before change in working capital Accounts receivable increase -47200 Prepaid expenses decrease 16200 Accounts payable increase 6000 Wages payable decrease. -4000 change in working capital -29000 Cash flow from operating Activities 520300

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