Gutierrez Company reported net income of $225,000 for 2020. Gutierrez also reported depreciation expense of $45,000 and a loss of $5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,0000 decrease in prepaid expenses.
Instructions
Prepare the operating activities section for the statement of cash flows for 2020. Use the indirect method..
Solutions
Gutierrez Company
Partial Statement of Cash flows-Indirect Method
For the Year Ended December 31, 2020.
Partial Statement of Cash flows-Indirect Method
For the Year Ended December 31, 2020.
