Salud Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $470,000 Accounts receivable increase 82,000 Prepaid expenses decrease 27,800 Accounts payable increase Wages payable decrease $ 50,800 15,300 7,400 2,500 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 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
Salud Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $470,000 Accounts receivable increase 82,000 Prepaid expenses decrease 27,800 Accounts payable increase Wages payable decrease $ 50,800 15,300 7,400 2,500 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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Salud Company reports the following information.
Selected Annual Income Statement Data
Net income
Depreciation expense
Gain on sale of machinery
Selected Year-End Balance Sheet Data
$470,000 Accounts receivable increase
82,000 Prepaid expenses decrease
27,800 Accounts payable increase
Wages payable decrease
$ 50,800
15,300
7,400
2,500
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
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
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