The following information is related to Alpha Company\'s fiscal year 2017. Incom
ID: 2608037 • Letter: T
Question
The following information is related to Alpha Company's fiscal year 2017. Income Statement:
Net Income $3,000,000
Depreciation Expense 500,000
Gain on Sale of Plant Assets 25,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable ($40,000)
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000 Use this information to prepare a partial Statement of Cash Flows for Alpha Company. Prepare only the section related to Cash Flows from Operating Activities.
Explanation / Answer
Cash Flows from Operating Activities: Net Income 3000000 Adjustments to reconcile net income to Net Cash by provided Operating Activities: Depreciation Expense 500000 Gain on Sale of Plant Assets -25000 Decrease in Accounts Payable -40000 435000 Net Cash by provided Operating Activities 3435000
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