Fitz Company reports the following information.Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income$ 391,000Accounts receivable decrease$ 27,200Depreciation expense44,200Inventory decrease46,000Amortization expense8,000Prepaid expenses increase6,400Gain on sale of plant assets7,100Accounts payable decrease8,200 Salaries payable increase1,900Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.Note: Amounts to be deducted should be indicated with a minus sign.

The cash flow statement from operational activities serves as an important financial statement that…

Answered: Fitz Company reports the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 81.2C

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Fitz Company reports the following information.

Selected Annual Income Statement Data		Selected Year-End Balance Sheet Data
Net income	$ 391,000	Accounts receivable decrease	$ 27,200
Depreciation expense	44,200	Inventory decrease	46,000
Amortization expense	8,000	Prepaid expenses increase	6,400
Gain on sale of plant assets	7,100	Accounts payable decrease	8,200
		Salaries payable increase	1,900

Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Note: Amounts to be deducted should be indicated with a minus sign.

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