Reporting Net Cash Flow from Operating Activities

The following information is available for Cornelius Inc.:

Selected Income Statement Information	Amount
Net income	$35,460
Depreciation expense	7,600

Selected Balance Sheet Information	Beginning Balance			Ending Balance
Accounts receivable	$21,200			$27,950
Inventory	45,800			40,125
Accounts payable	23,700			32,600

Required:

Prepare the net cash flows from operating activities using the indirect method. Use a minus sign to indicate any decreases in cash or cash flows.

Cornelius Inc. Net Cash Flows from Operating Activities Using Indirect Method

Cash flows from operating activities:
Decrease in inventoryDepreciation expenseIncrease in accounts payableIncrease in accounts receivableNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Decrease in accounts payableDecrease in accounts receivableDepreciation expenseIncrease in inventoryNet incomeDepreciation expense	$Depreciation expense
Decrease in accounts payableDecrease in accounts receivableIncrease in accounts receivableIncrease in inventoryNet incomeIncrease in accounts receivable	Increase in accounts receivable
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoryIncrease in inventoryNet incomeDecrease in inventory	Decrease in inventory
Decrease in accounts payableDecrease in accounts receivableIncrease in accounts payableIncrease in inventoryNet incomeIncrease in accounts payable	Increase in accounts payable
Net cash provided by operating activities