Exercise 16-7 Indirect: Reporting cash flows from operations P2 Annual Income Statement Data
Sales
Expenses
Cost of goods sold
Wages expense
Amortization expense
Net income
$50,000
30,000
10,000
1,500
$ 8,500
Selected Year-End Balance Sheet Data
Prepaid expenses increase
$3,000
Inventory Increase
500
Accounts payable decrease
1,000
Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method (Amounts to be
deducted should be indicated with a minus sign.)
Statement of Cash Flows (partial)
Cash flows from operating activities
Adjustments to reconcile not income to not cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities