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Salud Company reports the following information.
Selected Annual Income Statement Data Selected Year-End Balance Sheet Data
Net income $400,000 Accounts receivable increase $ 40,000
Depreciation expense 80,000 Prepaid expenses decrease 12,000
Gain on sale of machinery 20,000 Accounts payable increase 6,000
Wages payable decrease 2,000
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Respuesta :

Answer:

Net cash provided by operating activities $436,000

Explanation:

The preparation of the operating activities section of the cash flow statement is shown below:

Cash flow from operating activities

Net income $400,00

Less: increase in account receivable -$40,000

Add: depreciation expense $80,000

Add: decrease in prepaid expense $12,000

Less: Gain on sale of machinery -$20,000

Add: Increase in account payable $6,000

Less: Decrease in wages payable -$2,000

Net cash provided by operating activities $436,000

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