Gutierrez Company reported net income of $193,100 for 2017. Gutierrez also repor

Question

Gutierrez Company reported net income of $193,100 for 2017. Gutierrez also reported depreciation expense of S45,100 and a loss of 56,300 on disposal of equipment. The comparative balance sheet shows an decrease in accounts receivable of 519,600 for the year, a 521,600 increase in accounts payable, and a $3,400 decrease 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 either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Explanation / Answer

Cash flow statement of Operating Activity

Net Income $1,93,100

Deprecition Expense $45,100

Loss on Disposal Equipment $6300

Decreases in Account Receivable $19600

Increase in Account Payable $21600

Decress in prepaid expenses $3400

$ 96,000

Net cash provided by operating activity $289100

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