4
Salud Company reports the following information.
Selected Annual Income Statement Data
Net income
Depreciation expense
Gain on sale of machinery
$400,000
40,000
80,000
20,000
Selected Year-End Balance Sheet Data
Accounts receivable increase
Prepaid expenses decrease
Accounts payable increase
Wages payable decrease
12,000
6,000
2,000
Check my work
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.
(Amounts to be deducted should be indicated with a minus sign.)
Statement of Cash Flows (partial)
eBook
Hint
Print
References
Cash flows from operating activities
Net income
400,000
Adjustments to reconcile net income to operating cash flow
Depreciation
$\n80,000
Gain on sale of machinery
(20,000)
Accounts receivable increase
(40,000)
Prepaid expense decrease
12,000
Accounts payable increase
6,000
Wages payable decrease
(2,000)
36,000
436,000
Ac
praw
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