Fitz Company reports the following information Use the indirect method to prepar

Question

Fitz Company reports the following information Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign Net income Depreciation expense Amortization expense Gain on sale of plant assets 373,000 Accounts receivable decrease $53,500 49,000 5,989 9,400 1,400 48,200 Inventory decrease 8,680 Prepaid expenses increase 7,400 Accounts payable decrease Salaries payable increase Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activitios

Explanation / Answer

SOLUTION

Amount ($) Amount ($) Cash flows from operating activities Net Income 373,000 Adjustments to reconcile net income to operating cash flow- Depreciation 48,200 Amortization expense 8,600 Gain on sale of plant asset (7,400) Accounts receivable decrease 53,500 Inventrory decrease 49,000 Prepaid expense increase (5,900) Accounts payable decrease (9,400) Salaries payable increase 1,400 138,000 Net cash provided by operating activities 235,000

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