Gutierrez Company reported net income of $194,800 for 2017. Gutierrez also repor
ID: 2487117 • Letter: G
Question
Gutierrez Company reported net income of $194,800 for 2017. Gutierrez also reported depreciation expense of $43,200 and a loss of $5,500 on disposal of equipment. The comparative balance sheet shows an decrease in accounts receivable of $16,900 for the year, a $18,900 increase in accounts payable, and a $3,100 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).)
Adjustments to reconcile net income to
GUTIERREZ COMPANYPartial Statement of Cash Flows
For the Month Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Prepaid Expenses Net Income Increase in Prepaid Expenses Decrease in Accounts Receivable Depreciation Expense Loss on Disposal of Equipment Increase in Accounts Payable Decrease in Accounts Payable Increase in Accounts Receivable
$Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Increase in Accounts Payable Loss on Disposal of Equipment Increase in Accounts Receivable Decrease in Accounts Payable Decrease in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid Expenses Depreciation Expense Net Income
$Loss on Disposal of Equipment Increase in Accounts Payable Decrease in Accounts Payable Net Income Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid Expenses Depreciation Expense
Decrease in Prepaid Expenses Loss on Disposal of Equipment Decrease in Accounts Payable Net Income Increase in Accounts Payable Depreciation Expense Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Prepaid Expenses
Decrease in Prepaid Expenses Increase in Prepaid Expenses Loss on Disposal of Equipment Net Income Depreciation Expense Increase in Accounts Payable Decrease in Accounts Payable Decrease in Accounts Receivable Increase in Accounts Receivable
Decrease in Accounts Payable Increase in Accounts Payable Decrease in Prepaid Expenses Loss on Disposal of Equipment Increase in Accounts Receivable Increase in Prepaid Expenses Depreciation Expense Decrease in Accounts Receivable Net Income
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash
$Explanation / Answer
net income $194,800
depreciation expense $43,200
loss on disposal of equipment. $5,500
decrease in accounts receivable ($16,900)
increase in accounts payable $18,900
decrease in prepaid expenses. $3,100
net cash flow from operating activities =$248,600.
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