Exercise 12-5

The current sections of Sanford Inc.s balance sheets at December 31, 2013 and 2014, are presented here. Sanfords net income for 2014 was $153,000. Depreciation expense was $27,000.

		2014		2013
Current assets
Cash		$105,000		$ 99,000
Accounts receivable		80,000		89,000
Inventory		168,000		172,000
Prepaid expenses		27,000		22,000
Total current assets		$380,000		$382,000
Current liabilities
Accrued expenses payable		$ 15,000		$ 5,000
Accounts payable		85,000		92,000
Total current liabilities		$100,000		$ 97,000

Prepare the net cash provided by operating activities section of the companys statement of cash flows for the year ended December 31, 2014, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SANFORD INC. Partial Statement of Cash Flows For the Year Ended December 31, 2014
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Prepaid ExpensesIncrease in Prepaid ExpensesDecrease in Accounts PayableIncrease in Accounts PayableNet IncomeIncrease in InventoryDepreciation ExpenseIncrease in Accrued Expenses PayableIncrease in Accounts ReceivableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in Inventory		$
Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Increase in Accounts ReceivableIncrease in Accrued Expenses PayableDecrease in InventoryIncrease in Prepaid ExpensesNet IncomeIncrease in Accounts PayableIncrease in InventoryDecrease in Accrued Expenses PayableDepreciation ExpenseDecrease in Accounts ReceivableDecrease in Prepaid ExpensesDecrease in Accounts Payable	$
Increase in Accounts ReceivableNet IncomeDecrease in Accounts PayableDecrease in Accrued Expenses PayableDepreciation ExpenseIncrease in Accrued Expenses PayableDecrease in Accounts ReceivableDecrease in InventoryIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesIncrease in InventoryIncrease in Accounts Payable
Decrease in InventoryDecrease in Accounts PayableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesIncrease in Accounts PayableDepreciation ExpenseIncrease in Accounts ReceivableDecrease in Prepaid ExpensesNet IncomeDecrease in Accrued Expenses PayableDecrease in Accounts Receivable
Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Prepaid ExpensesIncrease in Accounts PayableDepreciation ExpenseIncrease in Accrued Expenses PayableDecrease in InventoryIncrease in Accounts ReceivableIncrease in InventoryIncrease in Prepaid ExpensesNet IncomeDecrease in Accrued Expenses Payable
Decrease in Accounts PayableIncrease in Accounts PayableNet IncomeIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesDecrease in Accounts ReceivableDepreciation ExpenseIncrease in Accounts ReceivableDecrease in InventoryIncrease in InventoryIncrease in Accrued Expenses PayableDecrease in Accrued Expenses Payable
Decrease in Accrued Expenses PayableDepreciation ExpenseIncrease in Accounts ReceivableIncrease in Prepaid ExpensesIncrease in InventoryDecrease in InventoryDecrease in Prepaid ExpensesDecrease in Accounts PayableIncrease in Accounts PayableNet IncomeIncrease in Accrued Expenses PayableDecrease in Accounts Receivable
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		$