Reporting Net Cash Flow from Operating Activities

The income statement for Granville Manufacturing Company is presented below.

Granville Manufacturing Company Income Statement For the year ended December 31, 2019
Sales			$4,199,830
Cost of goods sold			2,787,210
Gross margin			$1,412,620
Operating expenses:
Salaries expense	$831,800
Depreciation expense	246,100
Administrative expense	131,000
Bad debt expense	51,700
Other expenses	43,900		1,304,500
Net income			$ 108,120

The following balance sheet changes occurred during the year:

• Accounts receivable increased by $182,400.
• Inventory increased by $98,725.
• Prepaid expenses decreased by $64,100.
• Accounts payable increased by $43,850.
• Salaries payable increased by $54,900.

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 outflows.

Granville Manufacturing Company
Net Cash Flows from Operating Activities (Indirect Method)
For the year ended December 31, 2019
Cash flows from operating activities:
		$fill in the blank 2
Adjustments to reconcile net income to net cash flow from operating activities:
	$fill in the blank 4
	fill in the blank 6
	fill in the blank 8
	fill in the blank 10
	fill in the blank 16	fill in the blank 17
Net cash provided by operating activities