Chapter 16

Operating activities

Roselia Inc.s balance sheets at December 31, 2020 and 2019, are presented below. Roselias net income for 2020 was $153,000. Depreciation expense was $24,000.

		2020		2019
Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accounts payable Interest payable Total current liabilities		$102,000 41,000 9,000 12,000 $164,000 $18,000 5,000 $23,000		$91,000 27,000 18,000 9,000 $145,000 15,000 6,000 $21,000

Required:

1. Calculate the companys net cash provided by operating activities for December, 31, 2020.
2. Prepare net cash provided by operating activities section of the companys statement of cash flows for the year ended December 31, 2020, using the indirect method.