Question

Krech Corporation's comparative balance sheet appears below:

Comparative Balance Sheet
	Ending Balance			Beginning Balance
Assets:
Current assets:
Cash and cash equivalents	$	35,000		$	27,300
Accounts receivable		20,000			24,000
Inventory		66,000			62,000
Prepaid expenses		12,800			10,400
Total current assets		133,800			123,700
Property, plant, and equipment		422,000			402,000
Less accumulated depreciation		211,000			180,900
Net property, plant, and equipment		211,000			221,100
Total assets	$	344,800		$	344,800
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	19,400		$	13,000
Accrued liabilities		56,000			63,000
Income taxes payable		77,000			79,000
Total current liabilities		152,400			155,000
Bonds payable		88,000			81,000
Total liabilities		240,400			236,000
Stockholders’ equity:
Common stock		36,000			30,000
Retained earnings		68,400			78,800
Total stockholders’ equity		104,400			108,800
Total liabilities and stockholders' equity	$	344,800		$	344,800

The company's net income (loss) for the year was $(5,200) and its cash dividends were $5,200. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.

The company's net cash provided by (used in) operating activities is:

Garrison 16e Rechecks 2017-11-21

Answer 1

Answer:-

Krech Corporation
Statement of Cash Flow (Using Indirect Method)
For the year ended
Particulars		Amount
		$
Cash flow from opreating activities
Net Income		-5200
Adjustments to reconcile net income to net cash provided by opreating activities
Adjustment for non cash effects
Depreciation		30100
Change in opreating assets & liabilities
Decrease in accounts receiveble		4000
Increase in inventory		-4000
Increase in prepaid expenses		-2400
Increase in accounts payable		6400
Decrease in accrued liabilities		-7000
Decrease in income tax payable		-2000
Net cash flow from opreating activities (a)		19900