Answer and Explanation:
The preparation of the cash flow statement is presented below:
Cash flow from operating activities
Net income $49,311
Less: Gain on disposal of property -$1,188
Add: Depreciation expense $11,580
Add: Other items involving non-cash expenses $1,383
Less: Increase in accounts receivable -$1,746
Add: Decrease in inventory $990
Less: Increase in prepaid expenses -$605
Less: Decrease in accounts payable -$710
Less: Decrease in accrued and other current liabilities -995
Cash flow provided by operating activities $58,020
b.
Amortization of intangible assets : Added
Decrease in accounts payable : Decrease
Decrease in accounts receivable : Added
Decrease in accrued and other current liabilities : Decrease
Decrease in inventory : Added
Decrease in prepaid expenses : Added
Depreciation : Added
Gain on disposal of property : Decrease
Increase in accounts payable : Added
Increase in accrued and other current liabilities : Added
Increase in accounts receivable : Decrease
Increase in inventory : Decrease
Increase in prepaid expenses : Decrease
Losses on disposal of property: Added
Other items involving noncash expenses : added
