Exercise 12-3 Waterway Industries reported net income of $206,600 for 2017. Wate

ID: 2391248 • Letter: E

Question

Exercise 12-3 Waterway Industries reported net income of $206,600 for 2017. Waterway Industries also reported depreciation expense of $32,200 and a loss of $4,840 on t plant assets. The comparative balance sheets show an increase in accounts receivable of $14,870 for the year, a $16,810 increase in accounts payable, and a $3,630 increase in prepaid expenses Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method. (Show amounts that decrease cash flow with ei e.g. -15,000 or in parenthesis e.g. (15,000).) Waterway Industries Partial Statement of Cash Flows Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Answer

For the year ended 31 Dec 2017

Cash Flows from Operating Activities

Net Income

$ 2,06,600.00

Adjustments to reconcile Net Income to

Net Cash provided by operating activities

Depreciation expenses

$ 32,200.00

Loss on Plant Assets

$ 4,840.00

Increase in Accounts receivables

$ (14,870.00)

Increase in Accounts Payable

$ 16,810.00

Increase in Prepaid expenses

$ (3,630.00)

$ 35,350.00

Net Cash Provided by Operating Activities [Net Cash Flows from Operating activities]

$ 2,41,950.00