The current sections of Putzier Inc.’s balance sheets at December 31, 2011 and 2012, are presented here. Putzier’s net income for 2012 was $153,000. Depreciation expense was $27,000.

Instructions

Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2012, using the indirect method.

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2012 2011 Current assets Cash Accounts receivable Inventory Prepaid expenses $ 99,000 89,000 172,000 22,000 $105,000 80,000 168,000 27,000 Total current assets $380,000 $382,000 Current liabilities Accrued expenses payable Accounts payable $ 15,000 85,000 $ 5,000 92,000 $ 97,000 Total current liabilities $100,000