Prepare the operating activities section of the cash flows

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Question: Sosa Company reported net income of $190,000 for 2017. Sosa also reported depreciation expense of $35,000 and a loss of $5,000 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 increase in prepaid expenses.

Instructions: Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method.

Reference no: EM131835456

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