he current sections of Sandhill Co.’s balance sheets at December 31, 2016 and 20
ID: 2592769 • Letter: H
Question
he current sections of Sandhill Co.’s balance sheets at December 31, 2016 and 2017, are presented here. Sandhill Co.’s net income for 2017 was $156,519. Depreciation expense was $27,621. 2017 2016 Current assets Cash $107,415 $ 101,277 Accounts receivable 81,840 91,047 Inventory 171,864 175,956 Prepaid expenses 27,621 22,506 Total current assets $388,740 $390,786 Current liabilities Accrued expenses payable $ 15,345 $ 5,115 Accounts payable 86,955 94,116 Total current liabilities $102,300 $ 99,231 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:-
Sandhill Co's Statement of Cash Flow (Using Indirect Method) For the year ended December 31,2017 Particulars Amount $ $ Net Income 156519 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 27621 Change in opreating assets & liabilities Decrease in Accounts Receiviable 9207 Decrease in Inventory 4092 Increase in Prepaid expense -5115 Increase in Accrued expenses payable 10230 Decrease in Accounts payable -7161 Net cash flow from opreating activities 195393Related Questions
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