PA2. LO 16.3 Use the following information from Acorn Company's financial statements to determine operating net cash flows (indirect method). Balance Sheets Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Loss on sale of plant assets Net Income 2018 Income Statement $ 453,000 (359.000 165.000) (8.000) (11.900 9.100 Accounts Receivable Accounts Payable Dec. 31, 2018 529,500 13.250 Dec 31, 2017 $26.500 11.750 Accounts Receivable Accounts Payable Solution Operating Activities Net Income Depreciation Expense Loss on sale of plant assets Accounts Receivable Accounts Payable Net cash flows from operating activities Add back Reverse Cash impact Cash impact PA3. LO 16.3 Use the following information from Berlin Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Dec. 31. 2017 Cash Accounts Receivable Prepaid Assets Total Assets Dec 31, 2018 $29,000 11.500 1.200 41.700 $24,000 12.000 1,000 37.000 1,700 33,000 7,000 41,700 1.800 30.000 5.200 37.000 Accrued Liabilities Common Stock Retained Earnings Total Liabilities and Equity Additional information: Net income Dividends paid Solution Operating Activities: Net income 5.800 4,000 Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities: Accounts Receivable change Prepaid Assets change Accrued Liabilities change Net cash flows from operating activities