Exercise 12-5 Net Cash Provided by Operating Activities [LO12-2]

Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below:

Item		Amount
Accounts receivable	$	73,000	decrease
Inventory	$	117,000	increase
Prepaid expenses	$	3,100	decrease
Accounts payable	$	49,000	decrease
Accrued liabilities	$	9,100	increase
Income taxes payable	$	15,800	increase
Sale of equipment	$	8,300	gain
Sale of long-term investments	$	12,000	loss

Required:

For each item, indicate whether the dollar amount should be added to or deducted from net income under the indirect method when computing the net cash provided by operating activities for the year.