Can someone help me with this? Exercise 171 Towson Company prepared the tabulati

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Can someone help me with this?

Exercise 171 Towson Company prepared the tabulation below at December 31, 2017 Net Income Adjustments to reconcile net income to net cash provided by operating activities $340,000 Depreciation expense Increase in accounts receivable Decrease in inventory Amortization of patent Increase in accounts payable Decrease in interest receivable Increase in prepaid expenses Decrease in income taxes payabl Gain on sale of land Net cash provided (used) by operating activities $43,000 550,000 $13,000 $4,000 $5,600 $7,000 $6,000 $1,500 $5,000 Show how each item should be reported in the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) TOWSON COMPANY Partial Statement of Cash Flows Adjustments to reconcile net income to

Explanation / Answer

Cash flow from operating activities :

Net income 340000 Adjustment to reconcile net income To cash flow from operating activities Depreciation expense 43000 Amortization of patent 4000 Gain on sale of land -5000 Increase account receivable -50000 Decrease inventory 13000 Increase account payable 5600 Decrease interest receivable 7000 Increase prepaid expense -6000 Decrease income tax payable -1500 Net cash flow from operating activities 350100

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