The following data are taken from the income statement and balance sheet of Freeman Machinery, Inc.

Using this information, prepare a partial statement of cash flows for the year ended December 31, 2018, showing the computation of net cash flows from operating activities by the indirect method.

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Income statement: Net Income Depreciation Expense Amortization of Intangible Assets Gain on Sale of Plant Assets Loss on Sale of Investments Balance sheet: Accounts Receivable Inventory Prepaid Expenses Accounts Payable (to merchandise suppliers) Accrued Expenses Payable Dec. 2018 $ 385,000 135,000 40,000 90,000 35,000 $ 335,000 503,000 22,000 379,000 180,000 31, Jan. 2018 $ 380,000 575,000 13,000 410,000 155,000 1₂ Income statement: Net Income Depreciation Expense Amortization of Intangible Assets Gain on Sale of Plant Assets Loss on Sale of Investments Balance sheet: Accounts Receivable Inventory Prepaid Expenses Accounts Payable (to merchandise suppliers) Accrued Expenses Payable Dec. 2018 $ 385,000 135,000 40,000 90,000 35,000 $ 335,000 503,000 22,000 379,000 180,000 31, Jan. 2018 $ 380,000 575,000 13,000 410,000 155,000 1₂

Answer rating: 100% (QA)

Partial Statement of Cash Flow Operating Activity Section Amount Amount Net income 385000 Add Non ca... View the full answer