Villa Company reported net income of $195,000 for 2010. Villa also reported depreciation expense of $45,000 and a loss of $5,000 on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 decrease in prepaid expenses.
Prepare the operating activities section of the statement of cash flows for 2010. Use the indirect method.
This solution provides assistance in preparing the operating activities section of the statement of cash flows for 2010 using the indirect method.