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9 September, 05:05

Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)

Selected 2017 Income Statement Data Selected Year-End 2017 Balance Sheet Data

Net income $ 440,000 Accounts receivable increase $ 47,600

Depreciation expense 84,500 Prepaid expenses decrease 16,800

Gain on sale of machinery 25,100 Accounts payable increase 6,200

Wages payable decrease 2,900

Cash flows from operating activities

Adjustments to reconcile net income to operating cash flow

$

0

$0

+3
Answers (1)
  1. 9 September, 08:10
    0
    Salud's cash flows from operating activities is $471,900.

    Explanation:

    Salud Company

    Cash flows from operating activities

    Adjustments to reconcile net income to operating cash flow

    Net income $440,000

    Add: Depreciation expense 84,500

    Less: Gain on sale of machinery (25,100)

    Less: Accounts receivable increase (47,600)

    Add: Prepaid expenses decrease 16,800

    Add: Accounts payable increase 6,200

    Less: Wages payable decrease (2,900)

    Net cash flows from operating activities $471,900
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