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Speedy Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $47,000 and its total current liabilities totaling $31,000. At the end of
Speedy Industries began 2021 with its accounts receivable, inventory, and prepaid expenses totaling $47,000 and its total current liabilities totaling $31,000. At the end of the year, these same current assets totaled $45,000, while its total current liabilities totaled $22,000. Net income for the year was $82,000. Included in net income were a $7,000 loss on the sale of land and depreciation expense of $10,000. Show how Speedy should report cash flows from operating activities for 2021. 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 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation Loss on sale of land Decrease in accounts receivable, inventory, and prepaid expenses Decrease in current liabilities Net cash provided by (used for) operating activities 10000 7000 82000 (31000)
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