Exercise 13-5 The current sections of Scoggin Inc.\'s balance sheets at December

Question

Exercise 13-5 The current sections of Scoggin Inc.'s balance sheets at December 31, 2016 and 2017, are presented here Scoggin's net income for 2017 was $152,000. Depreciation expense was $24,200 2017 2016 Current assets Cash Accounts receivable Inventory Prepaid expenses $100,500 109,800 157,400 $97,200 77,900 171,700 26,00025,900 $372,700 Total current assets $393,700 Current liabilities Accrued expenses payable Accounts payable $8,500 85,90091100 $103,600 $15,600 Total current liabilities $101,500 Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended 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).) SCOGGIN INC Partial Statement of Cash Flows Adjustments to reconcile net income to

Explanation / Answer

Cash provided by operating activities

Net Income

$1,52,000

Items to reconcile net income to net cash provided by operating activities

Depreciation Expenses

$24,000

Increase in Accounts Receivable

($31,900)

Decrease in Inventory

$14,300

Increase in Prepaid Expenses

($100)

Increase in accrued Expenses Payable

$7,100

Decrease in Accounts Payable

($9,200)

Net Cash provided by operating Activities

$1,56,200

Net Income

$1,52,000

Items to reconcile net income to net cash provided by operating activities

Depreciation Expenses

$24,000

Increase in Accounts Receivable

($31,900)

Decrease in Inventory

$14,300

Increase in Prepaid Expenses

($100)

Increase in accrued Expenses Payable

$7,100

Decrease in Accounts Payable

($9,200)

Net Cash provided by operating Activities

$1,56,200

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