COnnect ACCOUNTING 16-Problem solving Question 4 (of 7) value: 10.71 points Exer
ID: 2583390 • Letter: C
Question
COnnect ACCOUNTING 16-Problem solving Question 4 (of 7) value: 10.71 points Exercise 16-6 Indirect: Cash flow from operations LO P2 Salud 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, 2015. (Amounts to be deducted should be indicated with a minus sign.) Selected 2015 Income Statement DataSelected Year-End 2015 Balance Sheet Data $41,600 15,900 9,400 2.300 $465,000 98,000 Net income Depreciation expense Gain on sale of machinery Accounts receivable increase Prepaid expenses decrease Accounts payable increase Wages payable decrease. Cash flows from operating activities Adjustments to reconcile net income to operating cash flowExplanation / Answer
Cash flows from Operating activities Net Income 465,000 Adjustments to reconcile net income to operating cash flow ADD : Depreciation expense 98,000 LESS : Gain on sale of machinery (22,700) LESS : Increase in Current assets Accounts receivable (41,600) ADD : Decrease in Current assets Prepaid expenses 15,900 ADD : Increase in Current liabilities Accounts payable 9,400 LESS : Decrease in Current liabilities Wages payable (2,300) 56,700 Cash flows from Operating activities 521,700