Question

Byles Topic: Statement of cash flows-Indirect method LO:3 5. Caritech had the following income statement for 2016: Sales Cost of goods sold Depreciation expense Other operating expenses and taxes Net Income $3,080.000 2,160,000 180,000 352,000 S 388.000 Additional information about the company follows: Accounts receivable Inventory Prepaid expenses Accounts payable End of Year $124,000 172.000 12.000 88,000 Beginning of Year $152,000 160,000 20,000 92,000 Calculate Cantechis cash flows provided by operating activities for 2016 using the indirect method

Answer 1

Answer:  

Cash Flow provided by operating activities	$ 588,000
Caritech
Cash Flow Statement(Operating Activities) For 2016
Cash flow from operating activities
Net Income		$ 388,000
Adjustment to reconcile net income to operating cash infllow
Depreciation	$ 180,000
Decrease in Accounts Receivable	$    28,000
Increase in Inventory	$ (12,000)
Decrease in Prepaid expense	$      8,000
Decrease in Accounts Payable	$    (4,000)	$ 200,000
Net Cash Provided by Operating activities		$ 588,000

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