Question

The records of Muted Color Engraving reveal the following: (Click the icon to view the records.) Compute cash flows from operating activities by the Indirect method for year ended December 31, 2018. (Use a minus sign or parentheses for amounts that result in a decrease in cash and to show net cash used for operating activities. If a box is not used in the table, leave the box emply do not select a label or enter a zero.) i Data Table Muted Color Engraving Statement of Cash Flows (Partial) Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Income $ $ 38,000 54,000 Depreciation expense Decrease in current liabilities Increase in current assets other than cash 3,000 29,000 Sales revenue 11,000 Loss on sale of land Acquisition of land 5,500 36,000 Print | Done Net Cash Provided by (Used for) Operating Activities

Answer 1

Solution:

H $38,000 Statement of Cash flows - Indirect method For the Year ended December 31, 2018 Cash Flow from Operating Activities: Net Income Adjustments to reconcile net income to net cash provided (used for) operating activities: Depreciation expense $3,000 Loss on sale of land $5,500 Decrease in current liabilities ($26000-21700) $29,000 Increase in Current assets $11,000 8 9 10 $31,500 Net Cash provided by (used for) Operating Activites $6,500 24 25 26 27 36 40 42 43 44 45 46 eet32 ) Sheet33 ) Sheet34 ) Sheet35 Sheet21 (2)