Question

Score: 0 of 4 pts 3 of 5 (3 complete) HW Score: 42.80 E13-12A (similar to) The comparative balance sheet for Fair Isle Travel Services, Inc. for December 31, 2017 and 2016, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Fake Isle Travel Services Inc (Click the icon to view the transaction data) Fair Isle Travel Services, Inc. uses the Indirect method for preparing the statement of cash flows. Prepare the operating section of the statement of cash flows for 2017 (Use parentheses or a minum to be subtracted or net cash outflow.) 0 Balance Sheet Fair Isle Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Fair Isle Travel Services, Inc. Statement of Cash Flows Operating Activities Section (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Net income Adjustments to reconcile net income to cash basis Depreciation expense Decrease in accounts receivable increase in inventory Decrease in prepaid Insurance Decrease in accounts payable increase in wages payable Increase in interest payable Increase in interest payable Current assets $ Accounts receivable 43,000 5 18.000 79,000 80.000 58,000 24.000 12000 13,000 192,000 $ 135,000 Prepaid insurance Total current assets Increase in income taxes payable Land Equipment Net cash provided by used for operating activities $ 105.000 5 115.000 78.000 57.000 (14.000) (8.000) $ 361.000 $ 299.000 Les Accumulated depreciation Total assets Choose from any list or enter any number in the input fields and then click Check Answer Liabilities Current liabilities Accounts payable Wages payable erot pa All parts showing 29.000 5 31.000 16.000 30.000 25.000 14.000 Type here to search O e

the comparative balance sheet for Fair Isle travel services inc for december 31, 2017 and 2016 is as follows

Fair isle services inc uses the indirect method for preparing the statement of cash flows. prepare the operation section of the statement of cash flow for 2017

Answer 1

STATEMENT OF CASH FLOW-OPERATING ACTIVITIES SECTION (INDIRECT METHOD) FOR THE YEAR ENDED DECEMBER 31,2017
Operating activities
Net income		30000
Adjustment to reconcile net income to cash basis
Depreciation expense	6000
loss on sale of land	3600
Decrease in accounts receivable (80000-79000)	1000
Increase in inventory (24000-58000)	-34000
Decrease in prepaid insurance (13000-12000)	1000
Decrease in accounts payable (30000-29000)	-1000
Increase in wages payable (31000-25000)	6000
Increase in interest payable (16000-14000)	2000
Increase in income taxes payable	#
Net cash provided by /(used by) operating activities

#Book value of land sold =Value at 2016 -Value at 2017

                  = 115000-105000

                  = 10000

Loss on sale =sale value -book value

        = 10000-6400

         = 3600

#Depreciation expense =Accumulated depreciation at 2017 -2016

                           = 14000 -8000

                           =6000

#Decrease in current asset and increase in current liabilities are added to net income (as cash is released)

Increase in current asset and decrease in current liabilities are subtracted from net income (as cash is blocked)

#Increase in income taxes payable is cutted in image kindly provide the same to complete the question