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Perrymore reports the following items related to the statement of cash flows: Net loss $35,000 Gain...

Perrymore reports the following items related to the statement of cash flows:

Net loss $35,000

Gain on sale of equipment $17,000

Purchase of equipment $26,200

Depreciation expense $49,000

Increase in accounts receivable $3,500

Increase in income tax payable $8,600

Cash received from sale of bonds $86,000

What amount would Perrymore report for "Cash from operating activities"?

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Expert Solution

Cash Flow from operating activities
Net Loss from Income statement        (3,500)
Adjustments to reconcile net income to operating cash flow
Add: Depreciation Expense           49,000
Less: Gain on sale of equipment        (17,000)
Accounts Receivable Increase           (3,500)
Increase In Inocme tax payable             8,600
Total adjusted amount        37,100
Cash flow from operating activities        33,600
NOTE: Purchase of equipment is part of investing activity and Cash received from sale of bonds is part of financing activity.

ekkarill92 answered 1 year ago
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