Salud Company reports the following information. Selected Annual Income Statement Data   Selected Year-End Balance Sheet Data   Net income $ 470,000 Accounts receivable increase $ 49,600 Depreciation expense 97,000 Prepaid expenses decrease 15,900 Gain on sale of machinery 26,900 Accounts payable increase 7,400     Wages payable decrease 2,100 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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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is