Question

Staley Inc. reported the following data:

Net income	$321,800
Depreciation expense	50,400
Loss on disposal of equipment	21,400
Increase in accounts receivable	14,800
Increase in accounts payable	12,600

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Staley Inc.
Statement of Cash Flows (partial)
Cash flows from operating activities:
	$
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities		$

Answer 1

Statement of cash flows -partial cash from operating activities net income adjustments to net income to cash provided by operating activities add:depreciation expense add: loss on disposal of equipment change in current operating assets and liabilities less:increase in accounts receivables add:increase in accounts paytable 3,21,800 50400 21400 -14800 12600 3,91,400 net cash flows provided by operating activities