Gutierrez Company reported net income of 190600 for 2017 Gut

Gutierrez Company reported net income of $190,600 for 2017. Gutierrez also reported depreciation expense of $45,400 and a loss of $5,300 on disposal of equipment The comparative balance sheet shows an decrease in accounts receivable of $18,900 for the year, a $20,900 increase in accounts payable, and a $3,400 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) GUTIERREZ COMPANY Partial Statement of Cash Flows Adjustments to reconcile net income to

Solution

Partial Statement of Cash Flows Cash flow from operating activities Net income for the year 190,600 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 45,400 loss on disposal of Equipment 5,300 Decrease in accounts receivable 18,900 increase in accounts payable 20,900 decrease in prepaid expenses 3,400 Net cash provided by operating activities 284,500