Question 3 (of 7) value 10.71 points Exercise 16-5 Indirect Cash flows from oper

Question

Question 3 (of 7) value 10.71 points Exercise 16-5 Indirect Cash flows from operating activities LO P2 Fitz Company reports the following information Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. (Amounts to be deducted should be indicated with a minus sign.) ted 2015 Income Statement Data Selected Year-End 2015 Balance Sheet Data Net income Depreciation expense Amortization expense Gain on sale of plant assets $385,000 Accounts receivable decrease $153,900 45,500 6,800 9,200 1,300 46,800 Inventory decrease 8,200 Prepaid expense increase 7,600 Accounts payable decrease Salaries payable increase Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities

Explanation / Answer

Answer:-

Fitz Company Cash Flow statement (Using Indirect Method) Particulars Amount $ Net Income 385000 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Amortization expense 8200 Depreciation 46800 Gain on sale of plant assets -7600 Change in opreating assets & liabilities Decrease in Accounts Receiviable 153900 Decrease in Inventory 45500 Increase in Prepaid expense -6800 Decrease in Accounts payable -9200 Increase in salaries payable 1300 Net cash flow from opreating activities 617100

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