Part 3 -Problem: (15 points) The current sections of Rannier Inc.\'s balance she

Question

Part 3 -Problem: (15 points) The current sections of Rannier Inc.'s balance sheets at December 31, 2016 and 2017, are presented here. Rannier's net income for 2017 was $132,000. Depreciation expense was $15,000. 2017 2016 Current assets $105,000 99,000 Cash Accounts receivable Inventory Prepaid expenses Total current assets 110,000 94,000 158,000 27,000 177,000 22.000 S400,000 S392,000 Current liabilities 15,000 $5,000 Accrued expenses payable Accounts payable Total current liabilities 80.00092.000 S 95,000 S 97,000 Instructions Prepare the net cash provided by operating activities section of the company's statement flows for the year ended December 31, 2017, using the indirect method.

Explanation / Answer

Prepare net cash provided by operating activities :

Cash flow from operating activity Net income 132000 Adjustment to reconcile net income Depreciation 15000 Increase account receivable (16000) Decrease inventory 19000 Increase prepaid expenses (5000) Increase accured expenses payable 10000 Decrease account payable (12000) Net cash flow from operating activities 143000

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