Exercise 12-4 Oriole Company reported net income of $190,100 for 2019. Oriole al
ID: 2582922 • Letter: E
Question
Exercise 12-4 Oriole Company reported net income of $190,100 for 2019. Oriole also reported depreciation expense of $46,700 and a loss of $4,600 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $12,500 for the year, a $14,500 increase in accounts payable, and a $4,600 decrease in prepaid expenses Prepare the operating activities section of the statement of cash flows for 2019. 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).) Oriole Company Partial Statement of Cash Flows Adjustments to reconcile net income to Click if you would like to Show Work for this question: Open Show WorkExplanation / Answer
STATEMENT OF CASH FLOW FROM OPERATING ACTIVITIES FOR YEAR 2019,USING INDIRECT METHOD IS :
ADD:DECREASE IN CURRENT ASSETS
DECREASE IN ACCOUNT RECIEVABLE $12,500
DECREASE IN PRE-PAID EXPENSES $4600
$17100
ADD:INCREASE IN LIABILITIES
INCREASE IN BILLS PAYABLE $14,500
NET CASH FLOW FROM OPERATING ACTIVITIES $273,000
PARTICULARS AMOUNT NET INCOME $190,100 ADD:DEPERICIATION EXPENSE $46,700 ADD:LOSS ON SALE OF ASSET $46,00ADD:DECREASE IN CURRENT ASSETS
DECREASE IN ACCOUNT RECIEVABLE $12,500
DECREASE IN PRE-PAID EXPENSES $4600
$17100
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