Question

Compute Cash Provided by Operating Activities

Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Horn Company's condensed income statement for the year ended December 31, 20-2, was as follows:

Net sales				$1,203,000
Cost of goods sold				732,000
Gross profit				$471,000
Operating expenses				137,000
Operating income				$334,000
Other revenues and expenses:
Interest revenue		$400
Interest expense		(1,100)		(700)
Income before taxes				$333,300
Income tax expense				116,655
Net income				$216,645

Additional information obtained from Horn's comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows:

	20-2	20-1
Accounts receivable	$137,100	$124,500
Merchandise inventory	144,600	159,400
Accounts payable	44,700	89,300
Income tax payable	1,700	900
Supplies and prepayments	10,700	6,700
Accrued and withheld payroll taxes	2,500	3,600
Accrued interest receivable	90	250
Accrued interest payable	240	160

Depreciation expense for 20-2, included in operating expenses on the income statement, was $32,900.

Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. Use a minus to indicate any decreases in cash or cash outflows.

Horn Company
Statement of Cash Flows (Partial)
For Year Ended December 31, 20-2
Cash flows from operating activities:
	$
Adjustments for changes in current assets and liabilities related to operating activities:
Noncash expenses:
Net cash provided by operating activities	$

Answer 1