Use the indirect method to prepare only the operating statem

Use the indirect method to prepare only the operating statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a m $53,600 17,100 7,400 3,800 26, 600 Accounts payable increase 24,000

Solution

net income 445000 Adjustments to reconcile net income to operating cash flow Depreciation 83500 Gain on sale of machinery -26600 Accounts receivable increase -53600 prepaid expenses decrease 17100 Accounts payable increase 7400 Wages payable decrease -3800 Total adjustments 24000 Cash flow from operations 469000