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Gutierrez Company reported net income of 5190,000 for 2020
Gutierrez Company reported net income of 5190,000 for 2020. Gutierrez also reported depreciation expense of $40,000 and a loss of $4,500 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $10,000 for the year, a $12,000 increase in accounts payable, and a $3,000 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) GUTIERREZ COMPANY Partial Statement of Cash Flows Adjustments to reconcile net income to | Click if you would like to show Work for this question: Open Show Work
Expert Solution
Answer
GUTIERREZ COMPANY
Statement of Cash Flow (Partial)
| Particulars | ||
| Cash flow from Operating Activities | ||
| Net income | 190000 | |
| Add: Adjustments to reconcile net income to net cash provided by operating activities | ||
| Depreciation expense | 40000 | |
| Loss on sale of plant assets | 4500 | |
| Accounts receivable decrease | 10000 | |
| Prepaid expenses decrease | 3000 | |
| Accounts payable increase | 12000 | |
| 69500 | ||
| Net cash provided by Operating Activities | 259500 |
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