Question

Doctor Company prepared the tabulation below at December 31, 2017. Net Income $307,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $32,000 Decrease in accounts receivable $50,000 Increase in inventory $12,000 Decrease in accounts payable $8,600 Increase in income taxes payable $1,500 Loss on sale of land $5,000 Net cash provided (used) by operating activities Show how each item should be reported in the statement of cash flows.

Answer 1

Answer:

$374,900

Explanation:

Doctor Company Statement of Cash Flow

Net Income $307,000

Reconciliation of net income to net cash:

Depreciation expense 32,000

.

Decrease in accounts receivable 50,000

Increase in inventory (12,000)

Decrease in accounts payable (8,600)

Increase in income taxes payable 1,500

Loss on sale of land 5,000

Net cash provided (used)by operating activities $374,900