Answer:
net income $63,000
+ depreciation $51,700
- gain on sale of equipment ($1,650)
change in current assets:
- increase in accounts receivables ($13,050)
- increase in inventory ($21,300)
+ decrease in prepaid insurance $630
change in current liabilities:
- decrease in accounts payable ($73,630)
- decrease in salaries payable ($5,800)
- decrease in notes payable ($51,300)
<u>net cash provided by operating activities ($51,400)</u>
Explanation:
2018 2017
Available-for-sale debt securities (not cash equivalents) 22,000 98,000 INVESTING ACTIVITY
Accounts receivable 93,000 79,950 = -13,050
Inventory 178,000 156,700 = -21,300
Prepaid insurance 2,670 3,300 = 630
Land, buildings, and equipment 1,276,000 1,138,000, INVESTING ACTIVITY
Accumulated depreciation 623,000 585,000 = 38,000 + 13,700 = 51,700
Accounts payable $88,040 $161,670 = -73,630
Salaries payable 25,200 31,000 = -5,800
Notes payable (current) 36,700 88,000 = -51,300
Bonds payable 213,000 0 FINANCING ACTIVITY
2) Equipment costing $20,000 with a book value of $6,300 was sold for $7,950 = 13,700 added to accumulated depreciation, -1,650 gain on sale
