Answer:
Net cash from operating activities is $527,000.
Explanation:
This can be prepared as follows:
Fitz Company
Statement of cash flows
(Operating activities section only)
For the year ended December 31.
<u>Details $ </u>
Net income 412,000
Adjustment to reconcile net income:
Depreciation expense 50,000
Amortization expense 7,300
Gain on sale of plant assets (7,400)
(Increase) decrease in current assets:
Accounts receivable decrease 33,400
Inventory decrease 47,500
Prepaid expenses increase (6,200)
Increase (decrease) in current liabilities:
Accounts payable decrease (10,900)
Salaries payable increase <u> 1,300 </u>
Net cash from operating activities <u> 527,000 </u>
