Net Cash Flow From Operating Activities Verna Company\'s records provided the fo

Question

Net Cash Flow From Operating Activities

Verna Company's records provided the following information for 2016:

Decrease in accounts payable, $4,600

Loss on sale of land, $1,900

Increase in inventory, $7,800

Increase in income taxes payable, $2,700

Net income, $68,400

Patent amortization expense, $1,600

Ordinary loss, $6,200

Decrease in deferred taxes payable, $2,500

Amortization of discount on bonds payable, $1,300

Payment of cash dividends, $24,000

Depletion expense, $5,000

Decrease in salaries payable, $1,400

Decrease in accounts receivable, $3,500

Gain on sale of equipment, $6,100

Proceeds from issuance of stock, $57,000

Ordinary gain, $3,700

Depreciation expense, $10,000

Amortization of discount on investment in bonds, $1,500

Required

Prepare the operating activities section of Verna's 2016 statement of cash flows using the indirect method. Use a minus sign to indicate cash outflows or decreases in cash.

VERNA COMPANY Statement of Cash Flows (Partial) For Year Ended December 31, 2016 Operating Activities: Net income $ Adjustment for noncash income items: Less: Loss on sale of land Add: Patent amortization expense Add: Depletion expense Less: Amortization of discount on investment in bonds Less: Depreciation expense Adjustments for cash flow effects
from working capital items: $

Explanation / Answer

Statement of cash flow (Partial) Operating activities Nrt Income $68,400 Adjustment for noncash income items: Less: Loss on sale of land    1,900.00 Add: Patent amortization expense    1,600.00 Add: Depletion expense    5,000.00 Less: Amortization of discount on investment in bonds    1,500.00 Less: Depreciation expense 10,000.00 Add: ordinary loss    6,200.00 Less: ordinary gain (3,700.00) Gain on sale of equipment (6,100.00) Adjustments for cash flow effects from working capital items: 17000 Increase in Inventories -7800 Decrease in Accounts Payable -4600 Increase in Income tax payable         2,700 Decrease in Deferred Taxes payable       (2,500) Decrease in salaries payable (1,400.00) Decrease in Accounts payable    3,500.00 Net cash from operating activities 91,700.00 If any doubt please comment

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