Question

he following information was taken from the records of Adams, Inc.. 2016 2017 ASSETS: Cash $...

he following information was taken from the records of Adams, Inc.. 2016 2017 ASSETS: Cash $ 25,000 $ 43,000 Accounts Receivable 120,500 115,000 Prepaid Rent 3,000 4,000 Accounts Payable 89,000 95,000 Utilities Payable 8,000 6,500 Income Statement For the Year ended December 31, 2017 REvenue $ 160,000 Expenses: Operating Expenses $ 123,000 Utilities Expenses 12,000 Rent Expense 16,000 (151,000 Net Income $ 9,000 REQUIRED: Prepare the Operating Activities section of the cash flow statement under the indirect method.

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Adams, Inc
Cash flow from operating activities- Indirect Method
For the ended december 31, 2017
Cash Flow from Operating Activities:
Net Income $     9,000
Adjustments to reconcile net income to net cash provided by operations:
Decrease in accounts receivables $    5,500
Increase in prepaid rent $ (1,000)
Increase in Accounts Payables $    6,000
Decrease in utilities payable $ (1,500)
$     9,000
A. Cash Flow from Operating Activities $ 18,000
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