Question

The comparative balance sheet for Mosaic Travel Services, Inc., for December 31, 2017 and 2016, is as follows: E(Click the icon to view the comparative balance sheet.) The following information is taken from the records of Mosaic Travel Services, Inc. (Click the icon to view the transaction data.) Prepare the statement of cash flows (indirect method) for Mosaic Travel Services, Inc., for 2017 Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and decreases in cash.) Mosaic Travel Services, Inc. Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Adjustments to reconcile net income to cash basis Net cash provided by (used for) operating activities

Answer 1

Answer

Cash Flow from Operating Activities
Net Income		$    41,000
Adjustments to be made
Depreciation	$      5,000
Income tax expense	$      8,000
Interest expense	$    15,000
Decrease in Account receivable	$      4,000
Increase in Inventory	$ (44,000)
Decrease in Prepaid insurance	$      2,000
Decrease in Account payable	$    (4,000)
Increase in Wages payable	$      7,000
Income tax paid	$    (6,000)
		$ (13,000)
		$    28,000

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