Question

Kennedy, Inc. reported the following data: $159,518 16,439 Net Income Depreciation expense Loss on disposal of equipment Gain on sale of building Increase in accounts receivable Decrease in accounts payable (9,454) 20,113 9,064 (2,402) 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, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc. Statement of Cash Flow Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities:

Answer 1

Kennedy Inc.
Statement of Cash Flows
Cash flows from operating activities:
Net Income	$         1,59,518
Adjustment to reconcile net income to net cash flow from operating activities:
Depreciation	$             16,439
Loss on disposal of equipment	$               9,454
Gain on sale of building	$           -20,113
Changes in current operating assets and liabilities
Increase in accounts receivables	$             -9,064
Decrease in accounts payable	$             -2,402
Net cash flows from operating activities		$   1,53,832