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    Statement of Cash Flows

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    Statement of Cash Flows
    (1) Prepare the operating activities section of the statement of cash flows based
    on the following information for A Company:
    Net Income
    $195,000
    Depreciation Expense
    $45,000
    Loss on Sale Of Equipment
    $5,000
    Decrease in Accounts Receivable Compared to Prior Year
    $15,000
    Increase in Accounts Payable Compared to Prior Year
    $17,000
    Decrease in Prepaid Expenses Compared to Prior Year
    $4,000
    Use the Indirect Method.
    (2) For each reconciliation item, explain why it has the specific effect (positive or
    negative) on cash basis.

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    Please see the attachment.

    (1) Prepare the operating activities section of the statement of cash flows based
    on the following information for A Company:
    Net Income $195,000
    Depreciation Expense $45,000
    Loss on Sale Of Equipment $5,000
    Decrease in Accounts Receivable Compared to Prior Year $15,000
    Increase in Accounts Payable Compared to Prior Year ...

    Solution Summary

    The solution explains how to prepare the Operating Activities section of the Statement of Cash Flows.

    $2.19

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