Question

The current sections of Pearl Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Pearl Corp.’s net income for 2022 was $279,400. Depreciation expense was $46,200.
2022 2021
Current assets
Cash $68,200 $97,900
Accounts receivable 93,500 75,900
Inventory 85,800 68,200
Prepaid expenses 18,700 20,900
Total current assets $266,200 $262,900
Current liabilities
Accrued expenses payable $6,600 $17,600
Accounts payable 96,800 79,200
Total current liabilities $103,400 $96,800
Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year ended December 31, 2022 using the indirect method.
Pearl Corp.
Partial Statement of Cash Flows
December 31, 2022
Cash Flows from Operating Activities
Net Income 168,300
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense 29,700
Decrease in Accounts Receivable
Decrease in Inventory
Increase in Prepaid Expenses:
Decrease in Accrued Expenses Payable
Decrease in Accounts Payable
Net Cash Provided by Operating Activities

Answer 1

Answer:

$299,200

Explanation:

Pearl Corp.’s Statement of cash flows

Cash Flows from operating activities:

Net Income 279,400

Adjustments to reconcile net income to cash flow from operating activities:

Depreciation expense $46,200

Accounts Receivables Increase ($17,600)

(93,500 -75,900)

Inventories Increase ($17,600)

(85,800 -68,200)

Prepaid expenses decrease $2,200

(18,700- 20,900)

Accrued Expenses payable decrease($11,000)

($6,600- $17,600)

Accounts Payable increase $17,600

(96,800 - 79,200)

Net Cash provided by Operating Activities $299,200