Calculate cash from operating activities using the indirect method. (LO 5)

Ace Corporation had the following information available for 2008 .

Ace Corporation reported net income of \(\$ 130,000\) for the year. Depreciation expense, included on the income statement, was \(\$ 20,800\).
\section*{Required}
Assume this is all the information relevant to the statement of cash flows. Use the indirect method to prepare the cash flows from operating activities section of Ace Corporation's statement of cash flows for the year ended December 31, 2008.

Transcribed Image Text:

Accounts receivable Prepaid insurance Inventory January 1 $80,000 December 31 $76,000 48,000 26,000 76,000 60,000