This homework assignment has 3 problems asking for the Operating Activity for the Statement of Cash Flow.

Begin with the Net Income add the Depreciation Expense. Then, if there is a gain or loss of a long-term asset, add the loss and subtract the gain.

Add the dollar amount changes using the balance sheet (excluding cash), current assets, and current liabilities.

If the dollar amount change for the current assets increases on the balance sheet, then these amounts would be deducted from the statement of cash flows and on the reverse, if the dollar amount change for current assets decreases on the balance sheet, these amounts would be added to the statement of cash flows.

If the dollar amount change for current liabilities increases on the balance sheet, then these amounts would be added to the statement of cash flows and the reverse; if the dollar amount change for current liabilities decreases on the balance sheet, these amounts would be deducted from the statement of cash flows.

Use the following data from Albuquerque Company's financial statements to determine operating net cash flows (indirect method): Net income Change in accumulated depreciation (no sale of depreciable assets this year) Loss on sale of company truck $325,000 26,200 7,800 Use the following information from Birch Company's balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000. Accounts Receivable Prepaid Insurance Accounts Payable Accrued Liabilities Dec. 31, 2018 $12,800 4,000 9,000 2,500 Dec. 31, 2017 $15,000 3,500 8,200 2,800 Use the following information from Chocolate Company's financial statements to determine operating net cash flows (indirect method). Sales Cost of Goods Sold Salaries Expense Depreciation Expense Net Income Accounts Receivable decrease Merchandise Inventory increase Salaries Payable increase Income Statement Balance Sheet $ 98,500 (62,000) (18,000) (9,000) 9,500 $2,000 1,600 450