Changes in various accounts and gains and losses on the sale of assets during the year for Weston Company are given below:
Item Amount
Accounts Receivable . . . . . . . . . . . . . . . . $70,000 decrease
Accrued Interest Receivable . . . . . . . . . . $6,000 increase
Inventory . . . . . . . . . . . . . . . . . . . . . . . . $110,000 increase
Prepaid Expenses . . . . . . . . . . . . . . . . . . $3,000 decrease
Accounts Payable . . . . . . . . . . . . . . . . . . $40,000 decrease
Accrued Liabilities . . . . . . . . . . . . . . . . . . $9,000 increase
Deferred Income Taxes Liability . . . . . . $15,000 increase
Sale of equipment . . . . . . . . . . . . . . . . . . $8,000 gain
Sale of long-term investments . . . . . . . . .$12,000 loss
Required:
For each item, place an X in the Add or Deduct column to indicate whether the dollar amount should be added to or deducted from net income under the indirect method when computing the net cash provided by operating activities for the year. Use the following column headings in preparing your answers:
Item Amount Add Deduct