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Fitzpatrick Company's calendar-year 2013 income statement shows the following: Net Income, $374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000. An examination of the company's current assets and current liabilites reveals the following changes (all from operating activities): Accounts Receivable decrease, $17,100; Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable decrease, $8,200; Other Payables increase, $1,200. Use the indirect method to compute cash flow from operating activities. Fitzpatrick Company Statement of Cash Flows - Operating Activities For Year Ended December 31, 2013 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Decrease in Accounts Receivable Decrease in Merchandise Inventory Increase in Prepaid Expenses Decrease in Accounts Payable Increase in Other Payables Depreciation Expense Amortization Expense Gain on Sale of Plant Assets Net Cash Provided by Operating Activities

Fitzpatrick Company's calendar-year 2013 income statement shows the following: Net Income, $374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000. An examination of the company's current assets and current liabilites reveals the following changes (all from operating activities): Accounts Receivable decrease, $17,100; Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable decrease, $8,200; Other Payables increase, $1,200. Use the indirect method to compute cash flow from operating activities. Fitzpatrick Company Statement of Cash Flows - Operating Activities For Year Ended December 31, 2013 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Decrease in Accounts Receivable Decrease in Merchandise Inventory Increase in Prepaid Expenses Decrease in Accounts Payable Increase in Other Payables Depreciation Expense Amortization Expense Gain on Sale of Plant Assets Net Cash Provided by Operating Activities

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fitzpatrick Company's calendar-year 2013 income statement shows the following: Net Income, $374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000. An examination of the company's current assets and current liabilites reveals the following changes (all from operating activities): Accounts Receivable decrease, $17,100; Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable decrease, $8,200; Other Payables increase, $1,200. Use the indirect method to compute cash flow from operating activities. Fitzpatrick Company Statement of Cash Flows - Operating Activities For Year Ended December 31, 2013 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Decrease in Accounts Receivable Decrease in Merchandise Inventory Increase in Prepaid Expenses Decrease in Accounts Payable Increase in Other Payables Depreciation Expense Amortization Expense Gain on Sale of Plant Assets Net Cash Provided by Operating Activities
Transcribed Image Text:Fitzpatrick Company's calendar-year 2013 income statement shows the following: Net Income, $374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000. An examination of the company's current assets and current liabilites reveals the following changes (all from operating activities): Accounts Receivable decrease, $17,100; Merchandise Inventory decrease, $42,000; Prepaid Expenses increase, $4,700; Accounts Payable decrease, $8,200; Other Payables increase, $1,200. Use the indirect method to compute cash flow from operating activities. Fitzpatrick Company Statement of Cash Flows - Operating Activities For Year Ended December 31, 2013 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Decrease in Accounts Receivable Decrease in Merchandise Inventory Increase in Prepaid Expenses Decrease in Accounts Payable Increase in Other Payables Depreciation Expense Amortization Expense Gain on Sale of Plant Assets Net Cash Provided by Operating Activities
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