Question

Question 1 Gutierrez Company reported net income of $191,900 for 2020. Gutierrez also reported depreciation expense of $44,600 and a loss of $4,600 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $15,100 for the year, a $17,100 increase in accounts payable, and a $3,000 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) GUTIERREZ COMPANY Partial Statement of Cash Flows Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show Work

Answer 1

GUTIERREZ COMPANY Partial Statement of Cash Flows For the Year Ended 2020 Cash Flows from Operating Activities 191,900.00 Net Income Adjustments to reconcile net income to Cash Flows from Operating Activities Add: Depreciation Expense Add: Loss on Disposal of Plant Asset 44,600.00 4,600.00 15,100.00 17,100.00 3,000.00 Add: Decrease in Accounts Receivables Add: Increase in Accounts Payable Add: Decrease in Prepaid Expense 2$ 84,400.00 276,300.00 $ Cash Flow From Operating Activities