Dutton Company prepared the tabulation below at December 31, 2008.
Net Income $275,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense, $25,000
Decrease in accounts receivable, $55,000
Increase in inventory, $12,000
Decrease in accounts payable, $6,600
Increase in income taxes payable, $1,500
Loss on sale of land, $5,000
Net cash provided (used) by operating activities
Instructions:
Show how each item should be reported in the statement of cash flows. Use parentheses for deductions
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
depreciation expense
decrease in accounts receivable
increase in inventory
decrease in accounts payable
increase in income tax payable
loss in sale of land
net cash provided(used) by operating activities