Question
Reporting Net Cash Flow from Operating Activities The income statement for Granville Manufacturing Company is presented below. Granville Manufacturing Company Income Statement For the year
Reporting Net Cash Flow from Operating Activities
The income statement for Granville Manufacturing Company is presented below.
Granville Manufacturing Company Income Statement For the year ended December 31 | |
Sales | $4,199,830 |
Cost of goods sold | (2,787,210) |
Gross margin | $1,412,620 |
Operating expenses: | |
Salaries expense | $(831,800) |
Administrative expense | (131,000) |
Bad debt expense | (51,700) |
Depreciation expense | (246,100) |
Other expenses | (43,900) |
Net income | $ 108,120 |
The following balance sheet changes occurred during the year:
Accounts receivable increased by $182,400.
Inventory increased by $98,725.
Prepaid expenses decreased by $64,100.
Accounts payable increased by $44,550.
Salaries payable increased by $59,570.
Required:
Prepare the net cash flows from operating activities using the indirect method. Use a minus sign to indicate any decreases in cash or cash outflows.
Cash flows from operating activities: | ||
Bad debt expenseDepreciation expenseIncrease in inventoryIncrease in net incomeNet cash provided by operating activitiesNet incomeNet loss | $- Select - | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Accumulated depreciationDecrease in accounts payableDecrease in inventoryDecrease in salaries payableDepreciation expense | $- Select - | |
Accounts receivableAllowance for doubtful accountsBad debt expenseDecrease in accounts receivableDecrease in inventory | - Select - | |
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoryIncrease in accounts receivableIncrease in prepaid expenses | - Select - | |
Allowance for doubtful accountsDecrease in accounts payableDecrease in inventoryDecrease in salaries payableIncrease in inventory | - Select - | |
Accumulated depreciationDecrease in accounts payableDecrease in inventoryDecrease in prepaid expensesIncrease in prepaid expenses | - Select - | |
Decrease in accounts payableDecrease in accounts receivableIncrease in accounts payableIncrease in bad debts expenseIncrease in depreciation expense | - Select - | |
Decrease in accounts payableDecrease in inventoryDecrease in salaries expenseDecrease in salaries payableIncrease in salaries payable | - Select - | |
Net cash provided by operating activities | $fill in the blank 17 |
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