Instruction: Prepare the operating section of the cash flow statement using the indirect method. Make sure that your answer is consistent with R3. If not, you must have made a mistake.

account name

sign +/-

$amount

Net cash flow from operating activities

Net income

=

Cash flow from operating activities

he income statement of Guesser Company is shown below GUESSER COMPANY INCOME STATEMENT Sales Cost of goods sold Gross proft Operating expenses $755,000 543,000 212,000 $52,000 89,000 41,000 71,000 Net income Additional information: 1. 2. 3. 4. 5. Accounts receivable decreased $63,000 during the year. Inventory increased $38,000 during the year. Prepaid expenses increased $12,000 during the year. Accounts payable to increased $25,000 during the year. Accrued expenses payable increased $6,000 during the year