Question

Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.) Selected 2017 Income Statement Data Net income $379,000 Depreciation expense 46,200 Amortization expense 8,100 Gain on sale of plant assets 7,400 Selected Year-End 2017 Balance Sheet Data Accounts receivable decrease $ 124,900 Inventory decrease 42,000 Prepaid expenses increase 5,500 Accounts payable decrease 9,200 Salaries payable increase 1,400 X Answer is not complete. Cash flows from operating activities Net income $ 379,000 Adjustments to reconcile net income to net cash provided by operating activities Decrease in accounts receivable 124,900 Decrease in accounts payable 9,200 X Decrease in inventory 7,400 X Amortization expense Gain on sale of plant assets Increase in accounts receivable Loss on sale of plant assets Depreciation expense Increase in salaries payable Net cash provided by operating activities $ 520,500

Answer 1

Net income	379000
Adjustment to reconcile net income to net cash provided by operating activities
Decrease in account receivable	124900
Decrease in account payable	-9200
Decrease in inventory	42000
Amortization expense	8100
Gain on sale of plant assets	-7400
Depreciation expense	46200
Prepaid expense increase	-5500
Increase salaries payable	1400
Net cash flow from operating activities	579500