The current sections of Bellinham Inc.\'s balance sheets at December 31, 2007 an

Question

The current sections of Bellinham Inc.'s balance sheets at December 31, 2007 and 2008, are presented here.
Bellinham's net income for 2008 was $153,000. Depreciation expense was $24,000.

2008 2007
Current assets
Cash $105,000 $99,000
Accounts receivable 110,000 89,000
Inventory 158,000 172,000
Prepaid expenses 27,000
22,000

Total current assets $400,000
$382,000


Current liabilities
Accrued expenses payable $15,000 $5,000
Accounts payable 85,000
92,000

Total current liabilities $100,000
$97,000



Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2008, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

BELLINGHAM INC,
Partial Statement of Cash Flows
For the Year Ended December 31, 2008

Cash flows from operating activities
Decrease in inventoryIncrease in prepaid expensesDepreciation expenseDecrease in prepaid expensesIncrease in accounts payableDecrease in accrued expenses payableIncrease in inventoryDecrease in accounts payableNet incomeIncrease in accrued expenses payableDecrease in accounts receivableIncrease in accounts receivable $
Adjustments to reconcile net income
to net cash provided by operating activities
Increase in accrued expenses payableDecrease in accounts payableDecrease in accounts receivableIncrease in accounts receivableDepreciation expenseIncrease in accounts payableDecrease in accrued expenses payableDecrease in inventoryDecrease in prepaid expensesIncrease in prepaid expensesIncrease in inventoryNet income $
Decrease in accounts payableIncrease in accounts receivableIncrease in accounts payableDecrease in accrued expenses payableIncrease in accrued expenses payableIncrease in inventoryDecrease in accounts receivableNet incomeIncrease in prepaid expensesDecrease in inventoryDepreciation expenseDecrease in prepaid expenses
Decrease in accrued expenses payableIncrease in prepaid expensesDepreciation expenseDecrease in prepaid expensesDecrease in accounts receivableIncrease in accrued expenses payableIncrease in inventoryIncrease in accounts receivableIncrease in accounts payableDecrease in inventoryNet incomeDecrease in accounts payable
Net incomeDecrease in accrued expenses payableIncrease in accounts payableIncrease in inventoryDecrease in accounts payableIncrease in accrued expenses payableIncrease in accounts receivableDecrease in accounts receivableDecrease in prepaid expensesIncrease in prepaid expensesDepreciation expenseDecrease in inventory
Increase in accounts receivableIncrease in accrued expenses payableDepreciation expenseIncrease in accounts payableIncrease in prepaid expensesDecrease in prepaid expensesNet incomeDecrease in accounts payableDecrease in inventoryDecrease in accrued expenses payableIncrease in inventory
Decrease in inventoryDecrease in accounts receivableDecrease in accounts payableDepreciation expenseIncrease in accounts receivableNet incomeIncrease in accounts payableDecrease in prepaid expensesIncrease in prepaid expensesIncrease in inventoryDecrease in accrued expenses payableIncrease in accrued expenses payable


Net cash provided by operating activities $



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Explanation / Answer

BELLINGHAM INC,

Partial Statement of Cash Flows

For the year ended December 31, 2008.

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BELLINGHAM INC,

Partial Statement of Cash Flows

For the year ended December 31, 2008.

Cash Flow From Operating Activities: Net Income 153000 Add: Cash Inflows Depreciation 24000 Decrease in Inventory 14000 Increase in Accrued expenses payble 10000 48000 48000 201000 Less: Cash Outflows Increase in Accounts recievables 21000 Increase in Prepaid Expenses 5000 Decrease in Accounts payble 7000 33000 33000 Net Cash Flow From Operating Activities: 168000 Net Cash Flow From Financing Activities:

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Net Cash Flow From Investing Activities:

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Add: Cash Opening Balance 99000 Cash Closing Balance 105000

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