Exercise 17-04

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Gutierrez Company reported net income of $193,800 for 2020. Gutierrez also reported depreciation expense of $40,700 and a loss of $5,800 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $15,400 for the year, a $17,400 increase in accounts payable, and a $4,500 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

GUTIERREZ COMPANY Partial Statement of Cash Flows December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
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 Accounts Payable Decrease in Prepaid Expenses Depreciation Expense Decrease in Accounts Receivable Increase in Accounts Receivable Loss on Disposal of Plant Assets Net Income Increase in Accounts Payable Increase in Prepaid Expenses		$
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
Net Income Decrease in Accounts Receivable Increase in Prepaid Expenses Depreciation Expense Increase in Accounts Receivable Increase in Accounts Payable Loss on Disposal of Plant Assets Decrease in Prepaid Expenses Decrease in Accounts Payable	$
Net Income Increase in Accounts Receivable Increase in Prepaid Expenses Decrease in Accounts Receivable Depreciation Expense Increase in Accounts Payable Loss on Disposal of Plant Assets Decrease in Accounts Payable Decrease in Prepaid Expenses
Increase in Prepaid Expenses Loss on Disposal of Plant Assets Decrease in Prepaid Expenses Depreciation Expense Net Income Increase in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Payable Decrease in Accounts Receivable
Depreciation Expense Increase in Accounts Payable Decrease in Accounts Payable Decrease in Accounts Receivable Increase in Accounts Receivable Net Income Loss on Disposal of Plant Assets Increase in Prepaid Expenses Decrease in Prepaid Expenses
Decrease in Prepaid Expenses Net Income Depreciation Expense Decrease in Accounts Payable Loss on Disposal of Plant Assets Increase in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Prepaid Expenses
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash		$ SHOW SOLUTION LINK TO TEXT

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