Question

Petroni Company reported the following selected results for its calendar year 2018

Net income: $135,000

Depreciation expense: $25,000

Gain on sale of assets: $5,000

Accounts receivable increase: $10,000

Accounts payable increase: $6,000

Prepaid expense decrease: $3,000

Wages payable decrease: $4,000

Prepare the operating section only of Petroni Company's statement of cash flows for 2018 under the indirect method of reporting.

Please use Excel format.

Answer 1

	Petroni Company's statement of cash flows for 2018 under the indirect method of reporting
	Cash flow under operating activities
	Net Income			135000
	Adjustments to reconcile net income to net cash provided by operating activities:
Add:-	Depreciation expense			25000
	Accounts payable increase			6000
	Prepaid expense decrease			3000
Less:-
	Gain on sale of assets			-5000
	Accounts receivable increase			-10000
	Wages payable decrease			-4000
	Net cash provided by operating activities		150000

Petroni Company's statement of cash flows for 2018 under the indirect method of reporting Cash flow under operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities: 135000 Add:- Depreciation expense Accounts payable increase Prepaid expense decrease 25000 6000 3000 Less:- Gain on sale of assets Accounts receivable increase Wages payable decrease -5000 -10000 -4000 Net cash provided by operating activities 150000

__________________________________________END_____________________________________________________

Hi mate,

I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.

In case of doubt, please comment. I will consider myself fortunate if I can help you.

All the best for your bright future.

Be safe from the corona. Wear a mask before going out and wash hands frequently especially before touching the face