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Use the following information from Coconut Company's financial statements. Dec. 31, 2018 Dec. 31, 2017 Cash $206,000 $175,000 Accounts Receivable 22,000 20,500 Inventory 33,750 30,500
Use the following information from Coconut Company's financial statements. Dec. 31, 2018 Dec. 31, 2017 Cash $206,000 $175,000 Accounts Receivable 22,000 20,500 Inventory 33,750 30,500 Prepaid Rent 7,000 2,000 Accounts Payable 19,500 28,750 Additional Information: Net Income $55,000 Depreciation Expense 11,500 Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Coconut Company Partial Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Cash Flow from Operating Activities: Net Income 55,000 Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities: Depreciation Expense 11,500 Accounts Receivable -1,500 Inventory -33,500 X Prepaid Rent -6,000 X Accounts Payable -10,750 Net Cash Flow from Operating Activities $ 43,000
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