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Scenic Transportation began 2016 with accounts receivable, inventory, and prepaid expenses totaling $47,000. At the end of the year, Scenic had a total of $45,000
Scenic Transportation began 2016 with accounts receivable, inventory, and prepaid expenses totaling $47,000. At the end of the year, Scenic had a total of $45,000 for these current assets. At the beginning of 2016, Scenic owed current liabilities of $37,000, and at year-end current liabilities totaled $42,000. Net income for the year was $10,000. Included in net income were a $5,000 gain on the sale of land and depreciation expense of $7,000. Show how Scenic should report cash flows from operating activities for 2016. Scenic uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities
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