Exercise 12-4 The current sections of Bridgeport Corp.’s balance sheets at Decem
ID: 2591936 • Letter: E
Question
Exercise 12-4 The current sections of Bridgeport Corp.’s balance sheets at December 31, 2016 and 2017, are presented here. Bridgeport Corp.’s net income for 2017 was $153,459. Depreciation expense was $27,081. 2017 2016 Current assets Cash $105,315 $ 99,297 Accounts receivable 80,240 89,267 Inventory 168,504 172,516 Prepaid expenses 27,081 22,066 Total current assets $381,140 $383,146 Current liabilities Accrued expenses payable $ 15,045 $ 5,015 Accounts payable 85,255 92,276 Total current liabilities $100,300 $ 97,291 Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Bridgeport Corp. Partial Statement of Cash Flows $ Adjustments to reconcile net income to $ $
Explanation / Answer
Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017,
Cash flow from operating activity Net income 153459 Adjustment to reconcile net income Depreciation exp 27081 Decrease account receivable 9027 Decrease inventory 4462 Increase prepaid exp (5015) Increase accured expenses payable 10030 Decrease account payable (7021) Net cash flow from operating activity 192023Related Questions
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