The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Scoggin’s net income for 2017 was $153,000. Depreciation expense was $24,000.

Instructions

Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method.

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2017 2016 Current assets $105,000 110,000 Cash $ 99,000 Accounts receivable Inventory Prepaid expenses 158,000 27,000 89,000 172,000 22,000 Total current assets $400,000 $382,000 Current liabilities $ 15,000 85,000 $ 5,000 Accrued expenses payable Accounts payable 92,000 Total current liabilities $100,000 $ 97,000