Hardware Suppliers reports net income of $157,000. Included in net income is a g

Question

Hardware Suppliers reports net income of $157,000. Included in net income is a gain on the sale of and$16,00 A compa son of his ear and as years balance sheets eveals an increase in accounts receivable of $27,000, an increase in inventory of $16,000, and a decrease in accounts payable of $47,000. Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) HARDWARE SUPPLIERS Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities

Explanation / Answer

Cash provided by operating activities: Net income 157000 Adjustments to reconcile net income to net cash provided by operations: Gain on sale of Land -16000 Increase in Accounts receivable -27000 Increase in Inventory    -16000 Decrease in Accounts payable 47000 -12000 Net cash provided by operating activities 145000

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