Exercise 12-3 Coronado Industries reported net income of $194,740 for 2017. Coro

Question

Exercise 12-3 Coronado Industries reported net income of $194,740 for 2017. Coronado Industries also reported depreciation expense of $32,180 and a loss of $5,180 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,320 for the year, a $18,120 increase in accounts payable, and a $3,720 increase 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).) Coronado Industries Partial Statement of Cash Flows Adjustments to reconcile net income to

Explanation / Answer

Cash provided by operating activities: Net income 194740 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation expense 32180 Loss on disposal of plant assets 5180 Increase in Accounts Payable 18120 Increase in Accounts Receivable -15320 Increase in prepaid expenses -3720 36440 Net cash provided by operating activities 231180

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