The following information is related to Alpha Companys fisca

The following information is related to Alpha Company\'s fiscal year 2017. Income Statement:

Net Income $3,000,000

Depreciation Expense 500,000

Gain on Sale of Plant Assets 25,000

Interest Expense 5,000

Balance Sheet - 12/31/17: Increase (Decrease)

Accounts Payable ($40,000)

Plant Assets - Purchased 250,000

Plant Assets - Disposals (100,000)

Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000 Use this information to prepare a partial Statement of Cash Flows for Alpha Company. Prepare only the section related to Cash Flows from Operating Activities.

Solution

Cash Flows from Operating Activities: Net Income 3000000 Adjustments to reconcile net income to Net Cash by provided Operating Activities: Depreciation Expense 500000 Gain on Sale of Plant Assets -25000 Decrease in Accounts Payable -40000 435000 Net Cash by provided Operating Activities 3435000