Exercise 12-5 Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $ 394,000 Accounts receivable decrease $ 87,800 Depreciation expense 49,800 Inventory decrease 49,500 Amortization expense 8,300 Prepaid expenses increase 6,400 Gain on sale of plant assets 7,300 Accounts payable decrease 8,900 Salaries payable increase 1,400

Exercise 12-5 Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus si Selected Annual Income Statement Data Net income $394,000 Depreciation expense Amortization expense 49,800 8,300 Gain on sale of plant assets Selected Year-End Balance Sheet Data Accounts receivable decrease ON $87,880 Inventory decrease 49,500 Prepaid expenses increase 6,480 Accounts payable decrea 8,900 Salaries payable incre 1,480 220 min th Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash . 1 Changes in current operating assets and liabilities RAM 2 MAMMA