Question

The comparative balance sheet for Fair Isle Travel​ Services, Inc., for December​ 31, 2017 and 2016

Assets 2017 2016 $ Current assets: Cash Accounts receivable Inventory Prepaid insurance Total current assets 40,000 $ 19,000 82,000 84,000 59,000 16,000 10,000 14,000 191,000 $ 133,000 $ Land Equipment Less: Accumulated depreciation $ 100,000 $ 115,000 77,000 61,000 (16,000) (10,000) $ 352,000 $ 299,000 Total assets

The following information is taken from the records of Fair Isle Travel​ Services, Inc.:

Answer 1

Statement of cash flows (operating activities section)
Operating activities:
Net income		41,000
Adjustments to reconcile net income to cash basis:
Add: Loss on sale of land (11,300-15,000)	3,700
Add: Depreciation expense	6,000
Add: Decrease in accounts receivable	2,000
Less: Increase in inventory	(43,000)
Add: Decrease in prepaid insurance	13,000
Less: Decrease in accounts payable	(7,000)
Add: Increase in wages payable	6,000
Add: Increase in interest payable	1,000
Add: Increase in income taxes payable	2,000	(16,300)
Net cash provided by (used for) operating activities		24,700