Question

The current sections of Grouper Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Grouper Corp.’s net income for 2022 was $260,100. Depreciation expense was $45,900.

		2022		2021
Current assets
Cash		$178,500		$ 168,300
Accounts receivable		136,000		151,300
Inventory		285,600		292,400
Prepaid expenses		45,900		37,400
Total current assets		$646,000		$649,400
Current liabilities
Accrued expenses payable		$ 25,500		$ 8,500
Accounts payable		144,500		156,400
Total current liabilities		$170,000		$ 164,900

Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Grouper Corp. Partial Statement of Cash Flows choose the accounting period                                                          December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022
select an opening section name                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income		$enter a dollar amount
Adjustments to reconcile net income to
select an opening name for subsection                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	$enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
		enter a total amount for this subsection
select a closing section name                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		$enter a total amount for this section

Answer 1

Ans.	GROUPER   CORP.
	Partial Statement of Cash Flows
	Particulars	Amount	Amount
	Cash flow from operating activities:
	Net income		$260,100
	Adjustments to reconcile Net income to Net cash
	provided by Operating Activities:
	Add: Depreciation expense	$45,900
	Add: Decrease in accounts receivables	$15,300
	Add: Decrease in inventory	$6,800
	Less: Increase in prepaid expenses	-$8,500
	Add: Increase in accrued expenses	$17,000
	Less: Decrease in accounts payable	-$11,900	$64,600
	Net cash from operating activities		$324,700
	*Calculations for Change in balance:
	Accounts receivable = $136,000 - $151,300 = -$15,300 (decrease)
	Inventory = $285,600 - $292,400 = -$6,800 (decrease)
	Prepaid expenses = $45,900 - $37,400 = $8,500 (increase)
	Accrued expenses   = $25,500 - $8,500 = $17,000 (increase)
	Accounts payable = $144,500 - $156,400 = -$11,900 (decrease)
	*Decrease in current liabilities and Increase in current assets other than cash is deducted from Net Income.
	*Increase in current liabilities and Decrease in current assets other than cash is added to Net Income.
	*Non cash & Non operating expenses are added to Net income.
	*Non cash & Non operating income are deducted from Net income.