Exercise 12-6 (Static) Indirect: Cash flows from operating activities LO P2

Salud Company reports the following information.

Selected Annual Income Statement Data		Selected Year-End Balance Sheet Data
Net income	$ 400,000	Accounts receivable increase	$ 40,000
Depreciation expense	80,000	Prepaid expenses decrease	12,000
Gain on sale of machinery	20,000	Accounts payable increase	6,000
		Wages payable decrease	2,000

Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Note: Amounts to be deducted should be indicated with a minus sign.

Exercise 12-6 (Static) Indirect: Cash flows from operating activities LO P2 Salud Company reports the following information. Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign