The following information was taken from the financial statements of Flexcor Corporation on December 31 of the current year. The comparative income statement of Flexcor Corporation reveals the following net income and depreciation expense for the current year.

The comparative balance sheet of Flexcor Corporation lists the following current assets and current liabilities and their ending balances for the current and prior years.

Instructions:
1. In the forms provided in the Working Papers, record the appropriate amount for net income. Indicate if this item represents a source of cash or use of cash.

2. Record the appropriate amount for depreciation expense. Indicate if this item represents a source of cash or use of cash.

3. For each current asset and current liability, write the balances for the current year and prior year. Classify each account as a current asset or current liability. Compute the amount of increase or decrease from the prior year. Indicate if the increase or decrease represents a source of cash or a use of cash.

4. Using the information collected, prepare the cash flows from operating activities section of the statement of cash flows for the current year ending December 31.

Transcribed Image Text:

Net income Depreciation expense $91,460.00 12,500.00