Prepare the "Cash flows from used for operating activities" section of the statement of cash flows, using the ind inus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows partial
Cash flows from used for operating activities:
Adjustments to reconcile net income to net cash flows from used for operating activities:
Gain on disposal of equipment
Changes in current operating assets and liabilities:
Increase in accounts receivable
Decrease in inventory
Decrease in prepaid insurance
Decrease in accounts payable
Increase in income taxes payable
Net cash flows from operating activities
b Why is net cash flows from operating activities different than net income?
