Exercise 12-4 The current sections of Monty Corp.\'s balance sheets at December

ID: 2404476 • Letter: E

Question

Exercise 12-4 The current sections of Monty Corp.'s balance sheets at December 31, 2016 and 2017, are presented here. Monty Corp.'s net income for 2017 was $166,464. Depreciation expense was $29,376 2017 2016 Current assets Cash Accounts receivable Inventory Prepaid expenses $114,240 87,040 182,784 29,376 $413,440 107,712 96,832 187,136 23,936 $415,616 Total current assets Current liabilities Accrued expenses payable Accounts payable $16,320 92,480 $108,800 s 5,440 100,096 $ 105,536 Total current liabilities Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Explanation / Answer

Monty Corp.

Partial Statement of Cash Flows

For the year ended December 31, 2017

Cash provided (used) by operating activities;

Net income

$166464

Adjustments to reconcile net income to cash flows from operating activities;

Add:

Depreciation expense

$29376

Decrease in accounts receivable

$9792

Decrease in inventory

$4352

Increase in accrued expense payable

$10880

Less:

Increase in prepaid expenses

($5440)

Decrease in accounts payable

($7616)

$41344

Net cash provided by operating activities

$207808