The Hillside Hotel’s financial results for 20X3 reflected the following:
• Net income of $50,000
• Gain on sale of land for $15,000
• Depreciation expense of $10,000
• Interest expense of $8,000

Changes in selected balance sheet accounts were as follows:

Jan. 1, 20X3 Dec. 31, 20X3
Cash $ 5,000 $ 13,500
Accounts Receivable 28,000 30,000
Inventory 15,500 14,200
Equipment 275,500 290,500
Accounts Payable 42,000 35,000
Accrued Expenses 10,000 12,000
Long-Term Debt 847,000 817,000

Prepare a schedule showing the cash flow from operating activities.

Answer rating: 100% (QA)

To prepare a schedule showing the cash flow from operating activities we need to use the indirect me... View the full answer