Gutierrez Company reported net income of $193,200 for 2020. Gutierrez also reported depreciation expense of $41,700 and a loss of $5,100 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $16,400 for the year, a $18,400 increase in accounts payable, and a $3,400 decrease in prepaid expenses.Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)GUTIERREZ COMPANYPartial Statement of Cash Flows For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Depreciation Expense Increase in Accounts Receivable Loss on Disposal of Plant Assets Increase in Prepaid Expenses Decrease in Prepaid Expenses Net Income Increase in Accounts Payable Decrease in Accounts Receivable Decrease in Accounts Payable $ Adjustments to reconcile net income to Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Net Income Increase in Accounts Payable Decrease in Accounts Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Receivable Depreciation Expense Increase in Accounts Receivable Loss on Disposal of Plant Assets $ Decrease in Accounts Payable Depreciation Expense Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Prepaid Expenses Increase in Accounts Receivable Decrease in Accounts Receivable Net Income Loss on Disposal of Plant Assets Decrease in Accounts Receivable Net Income Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Accounts Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Depreciation Expense Decrease in Accounts Payable Increase in Accounts Receivable Depreciation Expense Decrease in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid Expenses Loss on Disposal of Plant Assets Net Income Increase in Accounts Payable Decrease in Accounts Payable Decrease in Accounts Payable Depreciation Expense Increase in Prepaid Expenses Decrease in Accounts Receivable Decrease in Prepaid Expenses Net Income Increase in Accounts Receivable Loss on Disposal of Plant Assets Increase in Accounts Payable Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash $

Cash flows from operating activities: Cash flows from operating activities is a section of cash flow…

Answered: Gutierrez Company reported net income…

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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Gutierrez Company reported net income of $193,200 for 2020. Gutierrez also reported depreciation expense of $41,700 and a loss of $5,100 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $16,400 for the year, a $18,400 increase in accounts payable, and a $3,400 decrease in prepaid expenses.

Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

GUTIERREZ COMPANY Partial Statement of Cash Flows For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Depreciation Expense Increase in Accounts Receivable Loss on Disposal of Plant Assets Increase in Prepaid Expenses Decrease in Prepaid Expenses Net Income Increase in Accounts Payable Decrease in Accounts Receivable Decrease in Accounts Payable		$
Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Net Income Increase in Accounts Payable Decrease in Accounts Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accounts Receivable Depreciation Expense Increase in Accounts Receivable Loss on Disposal of Plant Assets	$
Decrease in Accounts Payable Depreciation Expense Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Prepaid Expenses Increase in Accounts Receivable Decrease in Accounts Receivable Net Income Loss on Disposal of Plant Assets
Decrease in Accounts Receivable Net Income Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Accounts Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Depreciation Expense Decrease in Accounts Payable
Increase in Accounts Receivable Depreciation Expense Decrease in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid Expenses Loss on Disposal of Plant Assets Net Income Increase in Accounts Payable Decrease in Accounts Payable
Decrease in Accounts Payable Depreciation Expense Increase in Prepaid Expenses Decrease in Accounts Receivable Decrease in Prepaid Expenses Net Income Increase in Accounts Receivable Loss on Disposal of Plant Assets Increase in Accounts Payable

Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash		$

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