Exercise 12-4 The current sections of Flounder Corp.\'s balance sheets at Decemb
ID: 2582203 • Letter: E
Question
Exercise 12-4 The current sections of Flounder Corp.'s balance sheets at December 31, 2016 and 2017, are presented here. Flounder Corp.'s net income for 2017 was $165,393 Depreciation expense was $29,187 2017 2016 Current assets Cash Accounts receivable Inventory Prepaid expenses $113,505 86,480 181,608 29,187 $410,780 $107,019 96,209 185,932 23,782 $412,942 Total current assets Current liabilities Accrued expenses payable Accounts payable 16,215 91,885 $108,100 $ 5,405 99,452 $ 104,857 Total current liabilities Prepare the net cash provided (used) 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).)Explanation / Answer
Answer:
Founder Corp
Statement cash flow (partial)
Amount $
Amount $
Cash flow from operating actvity
Net come
165,393
Adjustment to reconcile the net income
Add: decrese in Account recivable (96209-86480)
9729
Add: decrese in Inventory (185932-181608)
4324
Less: decrese in Prepaid Exp (23782-29187)
-5405
Add: Increse in Accruid Exp payable (16215-5405)
10810
Less: decrese in Account payable (91855-99452)
-7597
Net effect
11861
Cash flow from operating actvity
177,254
Founder Corp
Statement cash flow (partial)
Amount $
Amount $
Cash flow from operating actvity
Net come
165,393
Adjustment to reconcile the net income
Add: decrese in Account recivable (96209-86480)
9729
Add: decrese in Inventory (185932-181608)
4324
Less: decrese in Prepaid Exp (23782-29187)
-5405
Add: Increse in Accruid Exp payable (16215-5405)
10810
Less: decrese in Account payable (91855-99452)
-7597
Net effect
11861
Cash flow from operating actvity
177,254
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