5 Exercise 12-3 (Algo) Indirect: Reporting cash flows from operations LO P2 Arundel Company disclosed the following information for its recent calendar year. Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Interest expense Net loss $ 85,000 69,000 29,000 29,200 7,400 $ (49,600) Selected Year-End Balance Sheet Data Accounts receivable decrease Purchased a machine for cash Salaries payable increase Interest payable decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted s indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Changes in current operating assets and liabilities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 26,000 21,000 24,000 15,000

Exercise 12-3 (Algo) Indirect: Reporting cash flows from operations LO P2 Arundel Company disclosed the following information for its recent calendar year. Prepare the operating activities section of the statement of cash flows using th direct method. (Amounts to be deducted indicated with a minus sign.)