Fitz Company reports the following information.

Selected Annual Income Statement Data				Selected Year-End Balance Sheet Data
Net income	$	374,000		Accounts receivable decrease	$	17,100
Depreciation expense		44,000		Inventory decrease		42,000
Amortization expense		7,200		Prepaid expenses increase		4,700
Gain on sale of plant assets		6,000		Accounts payable decrease		8,200
				Salaries payable increase		1,200

 
Use the indirect method to prepare 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.)
 

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Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income Depreciation expense Amortization expense $374,000 44,000 7,200 Accounts receivable decrease $17,100 Inventory decrease Prepaid expenses increase Accounts payable decrease Salaries payable increase 42,000 4,700 8,200 1,200 Gain on sale of plant assets 6,000 Use the indirect method to prepare 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.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income Depreciation expense Amortization expense $374,000 44,000 7,200 Accounts receivable decrease $17,100 Inventory decrease Prepaid expenses increase Accounts payable decrease Salaries payable increase 42,000 4,700 8,200 1,200 Gain on sale of plant assets 6,000 Use the indirect method to prepare 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.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities

Answer rating: 100% (QA)

Cash flows from operating activities Net income 374000 Adjustments to reconcil... View the full answer