Exercise 12-6 Indirect: Cash flow from operations LO P2

Salud Company reports the following information.

Selected Annual Income Statement Data				Selected Year-End Balance Sheet Data
Net income	$	500,000		Accounts receivable increase	$	41,200
Depreciation expense		83,000		Prepaid expenses decrease		17,400
Gain on sale of machinery		23,600		Accounts payable increase		9,800
				Wages payable decrease		3,100

Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.)

Statement of Cash Flows (partial)
Cash flows from operating activities
Adjustments to reconcile net income to operating cash flow