Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Cash flows from operating activities Selected Year-End Balance Sheet Data $ 394,000 Accounts receivable decrease i 47,800 Inventory decrease 7,400 Prepaid expenses increase Changes in current operating assets and liabilities 7,000 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) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash; $ $ 27,600 45,000 5,600 10,600 2,200 0
Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Amortization expense Gain on sale of plant assets Cash flows from operating activities Selected Year-End Balance Sheet Data $ 394,000 Accounts receivable decrease i 47,800 Inventory decrease 7,400 Prepaid expenses increase Changes in current operating assets and liabilities 7,000 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) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash; $ $ 27,600 45,000 5,600 10,600 2,200 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Cash flows from operating activities
Selected Year-End Balance Sheet Data
$ 394,000 Accounts receivable decrease:
47,800 Inventory decrease
7,400 Prepaid expenses increase
7,000 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
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash;
$
$ 27,600
45,000
5,600
10,600
2,200
0
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