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For the fiscal year ended December 31, 2015, Brace Incorporated reportedL Net income of 5,000, which includes Depreciation expense totaling $600 A gain on a

For the fiscal year ended December 31, 2015, Brace Incorporated reportedL

  • Net income of 5,000, which includes
  • Depreciation expense totaling $600
  • A gain on a sale of equipment of $100

The company did not use or receive cash for any investing or financing activities.

Relevant excerpts from Brace's balance sheets for 2015 and 2014 are as follows:

Balance at

Year-end 2015

Balance at

Year-end 2014

Cash 5,730 2,150
Accounts Receivable 2,000 3,000
Inventory 4,000 2,000
Prepaid Insurance 720 600
Accounts Payable 1,000 1,500
Wages Payable 2,700 2,500
Unearned Revenue 100 600

Use the template below to prepare the Operating Cash Flows section of Brace's Statement of Cash Flows for 2015. If an adjustment is negative, enter it with a - sign, e.g., -500. For positive adjustents, just enter the dollar amount, e.g., 500.

Net Income
Adjustments for:
Depreciation expense
Gain on sale of equipment
Accounts receivable
Inventory
Prepaid insurance
Accounts payable
Wages payable
Unearned revenue
Net Cash from Operating Activities

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