Question

Fitz Company reports the following information.

Selected Annual Income Statement Data
Net income $373,000
Depreciation expense 45,200
Amortization expense 8,800
Gain on sale of plant assets 6,300
Selected Year-End Balance Sheet Data
Accounts receivable decrease $ 140,100
Inventory decrease 51,500
Prepaid expenses increase 6,800
Accounts payable decrease 9,700
Salaries payable increase 2,300
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Answer 1

operating activities section

Net income 373,000

Adjustment for non cash items :

Depreciation expense 45,200

Amortization expense 8,800

Gain on sale of plant assets (6,300)

Adjustment for Changes in Working Capital :

Accounts receivable decrease 140,100

Inventory decrease 51,500

Prepaid expenses increase (6,800)

Accounts payable decrease (9,700)

Salaries payable increase 2,300

Net Cash Provided by Operating Activities 598,100

Step-by-step explanation:

The operating activities section of its statement of cash flows for the year ended December 31 has been prepared above using indirect method.