Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Selected Year-End Balance Sheet Data $403,000 Accounts receivable decrease 48,000 Inventory decrease 8,100 Prepaid expenses increase 6,800 Accounts payable decrease Salaries payable increase Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Changes in current operating assets and liabilities Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 403,000 $ $ 87,300 51,000 5,200 8,700 1,800 403,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Fitz Company reports the following information.
Selected Annual Income Statement Data
Net income
Depreciation expense
Amortization expense
Gain on sale of plant assets
Selected Year-End Balance Sheet Data
$ 403,000 Accounts receivable decrease
48,000 Inventory decrease
8,100 Prepaid expenses increase
6,800 Accounts payable decrease
Salaries payable increase
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.
Note: Amounts to be deducted should be indicated with a minus sign.
Statement of Cash Flows (partial)
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
$ 403,000
$
$ 87,300
51,000
5,200
8,700
1,800
403,000
Transcribed Image Text:Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Selected Year-End Balance Sheet Data $ 403,000 Accounts receivable decrease 48,000 Inventory decrease 8,100 Prepaid expenses increase 6,800 Accounts payable decrease Salaries payable increase Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 403,000 $ $ 87,300 51,000 5,200 8,700 1,800 403,000
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