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Show how each item should be reported in the statement

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Show how each item should be reported in the statement Ex. 1 Towson Company prepared the tabulation below at December 31, 2014. Net Income $340,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense, $43,000 Increase in accounts receivable, $50,000 Decrease in inventory, $13,000 Amortization of patent, $4,000 Increase in accounts payable, $5,600 Decrease in interest receivable, $7,000 Increase in prepaid expenses, $6,000 Decrease in income taxes payable, $1,500 Gain 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. Ex. 2 The current sections of Donny Inc.’s balance sheets at December 31, 2013 and 2014, are presented here. Donny’s net income for 2014 was $203,000. Depreciation expense was $25,000. 2014 2013 Current assets Cash $115,000 $99,000 Accounts receivable 105,000 89,000 Inventory 154,000 172,000 Prepaid expense 27,000 21,000 Total current assets $401,000 $381,000 Current liabilities Accrued expenses payable $ 15,000 $ 5,000 Accounts payable 85,000 93,000 Total current liabilities $100,000 $ 98,000 Instructions Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2014, using the indirect method. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Show how each item should be reported in the statement

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