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Amazing Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $48,000 and its total current liabilities totaling $31,000. At the end of
Amazing Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $48,000 and its total current liabilities totaling $31,000. At the end of the year, these same current assets totaled $49,000, while its total current liabilities totaled $22,000. Net income for the year was $21,000. Included in net income were a $9,000 loss on the sale of land and depreciation expense of $11,000. Show how Amazing should report cash flows from operating activities for 2021. The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) ..... Cash flows from operating activities: Net income 21,000 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Loss on sale of land Depreciation Increase in accounts receivable, inventory, and prepaid expenses -9,000 11,000 1,000 Decrease in current liabilities -31,000 -22,000 Net cash provided by (used for) operating activities 15,000
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