Five Lakes Transportation (FLT) began 2020 with accounts receivable, inventory, and prepaid expenses totalling $67,000....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Five Lakes Transportation (FLT) began 2020 with accounts receivable, inventory, and prepaid expenses totalling $67,000. At the end of the year, FLT had a total of $80,000 for these current assets At the beginning of 2020 FLT owed current liabilities of $42,000, and at year-end, current liabilities totalled $39,000. Net income for the year was $88,000. Included in net income were a $1,000 gain on the sale of land and depreciation expense of $14,000 Show how FLT should report cash flows from operating activities for 2020. FLT uses the indirect method (Use parentheses or a minus sign for numbers to be subtracted or a net decrease in cash.) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation Gain on sale of land Increase in accounts receivable, inventory, and prepaid expenses Decrease in current liabilities Net cash provided by operating activities
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
