The records of True Color Engraving reveal the? following: Net income $42,000 Depreciation expense $9,000 Sales...

The records of True Color Engraving reveal the? following:

Net income	$42,000	Depreciation expense	$9,000
Sales revenue	54,000	Decrease in current liabilities	31,000
Loss on sale of land	5,000	Increase in current assets other than cash	7,000
Acquisition of land	36,000

Compute cash flows from operating activities by the indirect method for year ended December? 31, 2018. ?(Use parentheses or a minus sign for numbers to be subtracted and to show net cash used for operating activities. If a box is not used in the? table, leave the box? empty; do not select a label or enter a? zero.)

True Color Engraving

Statement of Cash Flows (Partial)

Year Ended December 31, 2018

Cash Flows from Operating Activities:

Net Income ____________

Adjustments to Reconcile Net Income to Net Cash

Provided by (Used for) Operating Activities:

________________________________________ ___________

A BUNCH OF BLANKS

Net Cash Provided by (Used for) Operating Activities ______________

Expert Solution

Net Income is adjusted using Indirect method under ‘operating activities’ section.
Non cash expenses like depreciation are added back to net income.
Decrease in current assets and increase in current liabilities are ADDED to Net Income.
Increase in Current Assets and decrease in current liabilities are DEDUCTED from Net Income.
Cash Flow Statement – partial – as asked

Cash Flow from Operating Activities:

Net Income		$ 42,000.00
Adjustments to reconcile Net Income to Net Cash
Provided by Operating activities:
Depreciation expense	$ 9,000.00
Loss on sale of land	$ 5,000.00
Decrease in Current liabilities	$ (31,000.00)
Increase in Current assets other than cash	$ (7,000.00)	$ (24,000.00)
Net Cash Provided by Operating Activities		$ 18,000.00

ekkarill92 answered 2 years ago

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