This is all one problem and I really need help :( Instructions The income statem

Question

This is all one problem and I really need help :(

Instructions The income statement disclosed the following items for 2016: Depreciation expense Gain on disposal of equipment Net income $63,970 38,840 439,500 Balances of the current assets and current liability accounts changed between December 31, 2015, and December 31, 2016, as follows: Accounts receivable Inventory Prepaid insurance Accounts payable Income taxes payable Dividends payable Increase (Decrease) $7,590 (5,860) (1,610) (5,700) 1,380 2,320

Explanation / Answer

Net Cash Flow from operating Activities by Indirect Method

Particulars Amount Net Income 439500 Add : Non-Cash Expenses:
(Depreciation, Depletion & Amortization Expense) 38840 Add : Non-Operating Losses: (Loss on Sale of Non-Current Assets) 0 Less : Non-Operating Gains: (Gain on Sale of Non-Current Assets) (38840) Add : Decrease in Current Assets: (Accounts Receivable, Prepaid Expenses, Inventory etc.) (5860+1610) 7470 Less : Increase in Current Assets (7590) Add : Increase in Current Liabilities: (Accounts Payable, Accrued Liabilities, Income Tax Payable etc.) (1380+2320) 3700 Less : Decrease in Current Liabilities (5700) Net Cash Flow from operating Activities 437380

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