Report cash flows from operating activities-indirect method
Response to the following problem:
Incredibly Fast Transportation (IFT) began 2014 with accounts receivable, inventory, and prepaid expenses totaling $56,000. At the end of the year, IFT had a total of $59,000 for these current assets. At the beginning of 2014, IFT owed current liabilities of $41,000, and at yearend current liabilities totaled $45,000. Net income for the year was $76,000. Included in net income were a $3,100 loss on the sale of land and depreciation expense of $12,000. Show how IFT should report cash flows from operating activities for 2014. IFT uses the indirect method.