Question

Pronghorn Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $13,760 and accounts payable increased by $9,604. Depreciation expense was $44,000.

Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

PRONGHORN COMPANY Cash Flow Statement choose the accounting period                                                          December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
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 ReceivableIncrease in Accounts PayableDecrease in Accounts PayableDepreciation ExpenseNet IncomeIncrease in Accounts Receivable		$enter a dollar amount
Adjustments to reconcile net income to
select a subsection 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                                                          Increase in Accounts PayableIncrease in Accounts ReceivableDepreciation ExpenseNet IncomeDecrease in Accounts ReceivableDecrease in Accounts Payable	$enter a dollar amount
select an item                                                          Decrease in Accounts ReceivableNet IncomeIncrease in Accounts PayableIncrease in Accounts ReceivableDepreciation ExpenseDecrease in Accounts Payable	enter a dollar amount
select an item                                                          Increase in Accounts ReceivableDepreciation ExpenseNet IncomeIncrease in Accounts PayableDecrease in Accounts PayableDecrease in Accounts Receivable	enter a dollar amount
		enter a subtotal of the adjustments
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 the section

Answer 1

• Requirement asked

Cash Flows Statement
for the year ended 31 Dec 2020
Cash flows from Operating activities
Net Income		$152,900
Adjustment to reconcile net income to
Net Cash provided by operating activities
Increase in account receivables	($13,760)
Increase in Accounts Payable	$9,604
Depreciation expense	$44,000
		$39,844
Net Cash provided by Operating activities		$192,744

No.	Conceptual Notes
1	Cash Flow Statement reflects the Cash Inflows and Outflows during a period of time.
2	Effects of Non - Cash Transaction are adjusted from Net Income.
3	Depreciation Expense, Amortisation expenses are Added back to Net Income in Cash Flow Statement.
4	Decrease in Current Assets OR Increase in Current Liabilities are ADDED to Net Income
5	Increase in Current Assets OR Decrease in Current Liabilities are DEDUCTED from Net Income