Question

Salud Company reports the following information.

Selected Annual Income Statement Data Selected Year-End Balance Sheet Data
Net income $445,000 Accounts receivable increase $46,000
Depreciation expense 93,000 Prepaid expenses decrease 16,500
Gain on sale of machinery 23,600 Accounts payable increase 7,400
Wages payable decrease 3,700
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Answer 1

The Cash Flow statement is attached with this answer please find that

Step-by-step explanation:

In the Indirect method the following adjustments are made in the net income for the period

• Non cash Adjustments
• Non operating adjustments
• Working capital changes

A complete answer is available in the attached file.