Kingbird Company prepared the tabulation below at December 31, 2022.
Net Income: $300,000
Adjustments to reconcile net income to net cash provided by operating activities:
- Depreciation expense: $25,000
- Increase in accounts receivable: $75,000
- Decrease in inventory: $15,000
- Amortization of patent: $4,000
- Increase in accounts payable: $7,500
- Decrease in interest receivable: $4,000
- Increase in prepaid insurance: $7,000
- Decrease in income taxes payable: $2,000
- Gain on disposal of plant assets: $10,000
Net cash provided (used) by operating activities: [To be determined]
Show how each item should be reported in the statement of cash flows. (Show amounts that decrease cash flow with either a negative sign or in parentheses)
LACEY COMPANY Partial Statement of Cash Flows
Adjustments to reconcile net income to net cash provided by operating activities:
- Gain on Disposal of Land
- Increase in Inventory
- Increase in Accounts Payable
- Decrease in Income Taxes Payable
Net Cash Provided by Operating Activities: [To be determined]
Net Income / (Loss)
- Increase in Income Taxes Payable
- Depreciation Expense
- Increase in Prepaid Expenses
- Increase in Accounts Receivable
- Decrease in Accounts Payable
- Decrease in Prepaid Expenses
- Decrease in Inventory
Net Cash Used by Operating Activities: [To be determined]
Decrease in Accounts Receivable