Brief Exercise 12-6 The comparative balance sheets for Crane Company show these

Question

Brief Exercise 12-6 The comparative balance sheets for Crane Company show these changes in noncash current asset accounts: accounts receivable decreased $77,800, prepaid expenses increased $25,700, and inventories increased $41,000 Compute net cash provided by operating activities using the indirect method, assuming that net income is $201,300. (Show amounts that decrease cash flow with either a sign e.g.-15,000 or in parenthesis e.g. (15,000).) Crane Company Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Statement of cash flows - Indirect method Particulars Amount $ Amount $ Net Income     201,300 Adjustments to reconcile net income Add: Decrease in current assets and increase in current liabilities Accounts receivable decreased       77,800 Less: Decrease in current liabilities and increase in current assets Prepaid expenses increased     (25,700) Inventories increased     (41,000)       11,100 Cash flows from operating activities     212,400

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