Bookstore recorded a net loss of $75,000 for 2017. Included in the Income Statem

Question

Bookstore recorded a net loss of $75,000 for 2017. Included in the Income Statement was a gain on disposal of equipment for $2,500 and depreciation expense of $7,000. The comparative balance sheets (2016 & 2017) also showed a decrease in Accounts receivable of $4,000 and an increase in Accounts Payable of $$3,800. Calculate net cash provided by operating activities using the indirect method of cash flows. Net Income (loss) Adjustments to reconcile net income to net cash Provided by operating activities: Depreciation expense Gain on disposal of equipment Decrease in Accounts Receivable Increase in Accounts Payable Net Cash Provided by Operating Activities.

Explanation / Answer

Net income(loss) -75000 Adjustments to reconcile net income to net cash Provided by operating activities: Depreciation expense 7000 Gain on disposal of Equipment -2500 Decrease in Accounts Receivable 4000 Increase in Accounts Payable 3800 Net cash provided by operating activities -62700

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