Question

$59.ee Annual Income Statement Data Sales Expenses: Cost of goods sold Wages expense Amortization expense Net Income Selected Year-End Balance Sheet Data Prepaid expenses increase Inventory increase Accounts payable decrease $ 3,10 1,30 points 10,9ee 1,900 $19, 2ee eBook Print Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method (Amounts to be deducted should be indicated with a minus sign.) References Statement of Cash Flows (partial) Cash flows from operating activities Net Income Is Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Amortization expense 10,200 - Changes in current operating assets and liabilities Prepaid expenses increase Inventory increase Accounts payable decrease 2 of Next >

Answer 1

Statement of cashflow from operating activities using indirect method
	Particulars	Amount ($)
	Net Income	10200
Add	Amortization expense	1900
	Adjustments in working capital changes:
Less:	Increase in prepaid expense	3100
Less:	Increase in inventory	550
Less:	Decrease in account payable	1300
	cashflow from operating activities	7150

So the given solution is correct.