The records of True Color Engraving reveal the? following: Net income $42,000 De

ID: 2412459 • Letter: T

Question

The records of True Color Engraving reveal the? following:

Net income

$42,000

Depreciation expense

$9,000

Sales revenue

54,000

Decrease in current liabilities

31,000

Loss on sale of land

5,000

Increase in current assets other than cash

7,000

Acquisition of land

36,000

Compute cash flows from operating activities by the indirect method for year ended December? 31, 2018. ?(Use parentheses or a minus sign for numbers to be subtracted and to show net cash used for operating activities. If a box is not used in the? table, leave the box? empty; do not select a label or enter a? zero.)

True Color Engraving

Statement of Cash Flows (Partial)

Year Ended December 31, 2018

Cash Flows from Operating Activities:

Net Income ____________

Adjustments to Reconcile Net Income to Net Cash

Provided by (Used for) Operating Activities:

________________________________________ ___________

A BUNCH OF BLANKS

Net Cash Provided by (Used for) Operating Activities ______________

Net income

$42,000

Depreciation expense

$9,000

Sales revenue

54,000

Decrease in current liabilities

31,000

Loss on sale of land

5,000

Increase in current assets other than cash

7,000

Acquisition of land

36,000

Explanation / Answer

Answer

Cash Flow from Operating Activities:

Net Income

$ 42,000.00

Adjustments to reconcile Net Income to Net Cash

Provided by Operating activities:

Depreciation expense

$ 9,000.00

Loss on sale of land

$ 5,000.00

Decrease in Current liabilities

$ (31,000.00)

Increase in Current assets other than cash

$ (7,000.00)

$ (24,000.00)

Net Cash Provided by Operating Activities

$ 18,000.00