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Incredible Industries began 2018 with accounts receivable, inventory, and prepaid expenses totaling $ 48,000 and...

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Accounting

Incredible Industries began 2018 with accounts receivable, inventory, and prepaid expenses totaling $ 48,000 and its total current liabilities totaling$ 39,000.At the end of the year, these same current assets totaled $49,000, while its total current liabilities totaled $50,000. Net income for the year was $89,000. Included in net income were a 6,000 loss on the sale of land and depreciation expense of$5,000.

Show how Incredible should report cash flows from operating activities for 2018.The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)

Cash flow from operating activities:

Net Income ______________

Adjustment to reconcile net income to

net cash provided by operating activities:

Depreciation expense ______________

Loss on sale of land ______________

Decrease in accounts receivable, inventory,

and prepaid expenses _____________

Increase in current liabilities ____________ __________

Net cash provides by operating activities __________

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