Exercise 13-5 Your answer is partially correct. Try again. The current sections

ID: 2530597 • Letter: E

Question

Exercise 13-5 Your answer is partially correct. Try again. The current sections of Scoggin Inc.'s balance sheets at December 31, 2016 and 2017, are presented here Scoggin's net income for 2017 was $150,000. Depreciation expense was $23,000 2017 2016 Current assets Cash Accounts receivable Inventory Prepaid expenses $100,000 107,000 157,000 26,000 $390,000 $95,000 77,000 171,000 25,000 368,000 Total current assets Current liabilities Accrued expenses payable Accounts payable $14,000 84,000 $98,000 $8,000 95,000 $103,000 Total current liabilities Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2017, using 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

Answers

Cash Flow from Operating Activities

Net Income

$ 1,50,000.00

Adjustments to reconcile Net Income to

Cash Generated by Operating activities

Depreciation expense

$ 23,000.00

Increase in Accounts receivables

$ (30,000.00)

Decrease in inventory

$ 14,000.00

Increase in Prepaid Expenses

$ (1,000.00)

Increase in Accrued expenses payable

$ 6,000.00

Decrease in Accounts payable

$ (11,000.00)

$ 1,000.00

Net Cash Provided by Operating Activities

$ 1,51,000.00