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Speedy Industries began 2018 with accounts receivable, inventory, and prepaid expenses totaling $52,000 and its total current liabilities totaling $34,000. At the end of the
Speedy Industries began 2018 with accounts receivable, inventory, and prepaid expenses totaling $52,000 and its total current liabilities totaling $34,000. At the end of the year, these same current assets totaled $50,000, while its total current liabilities totaled $38,000. Net income for the year was $86,000. Included i net income were a $5,000 gain on the sale of land and depreciation expense of $8,000. Show how Speedy should report cash flows from operating activities for 2018. The company 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: Net income $ 86,000 $ 8,000 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation Gain on sale of land Decrease in accounts receivable, inventory, and prepaid expenses Increase in current liabilities Net cash provided by (used for) operating activities
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