Hi! So this is given: The comparative balance sheets for Montalvo Company show t

Question

Hi!

So this is given:

The comparative balance sheets for Montalvo Company show these changes in noncash current asset accounts: accounts receivable decrease $80,000, prepaid expenses increase $28,500, and inventories increase $33,500.

Compute net cash provided by operating activities using the indirect method assuming that net income is $268,900. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Please help!

Brief Exercise 13-6 The comparative balance sheets for Montalvo Company show these changes in noncash current asset accounts: accounts receivable decrease $80,000, prepaid expenses increase $28,500, and inventories increase $33,500 Compute net cash provided by operating activities using the indirect method assuming that net income is $268,900. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Montalvo Company Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to So

Explanation / Answer

Montalvo Company Cash flow from operating activities Net Income 2,68,900 Adjustments for Decrease in accounts receiveble    80,000 Increase in inventory -33,500 Increase in prepaid expenses -28,500      18,000 Net Cash flow from operating Activities 2,86,900

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