Question: Did i do this right? The comparative balance sheets for Montalvo Company show these changes in noncash current asset accounts: accounts receivable decrease $75,000, prepaid
The comparative balance sheets for Montalvo Company show these changes in noncash current asset accounts: accounts receivable decrease $75,000, prepaid expenses increase $23,000, and inventories increase $30,000. Compute net cash provided by operating activities using the Indirect method assuming that net income is $225,000. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Montalvo Company Statement of Cash Flows-Indirect Method Cash Flows from Operating Activities Net Income 225,000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Decrease in Accounts Receivable 75,000 Increase in Prepaid Expenses (23,000) Increase in Inventory (30,000) 22,000 Net Cash Provided by Operating Activities 247,000
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