Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $374,000 44,000 7,200 6,000 Accounts receivable decrease Depreciation expense Amortization expense Gain on sale of plant assets Inventory decrease Prepaid expenses increase Accounts payable decrease Salaries payable increase $17,100 42,000 4,700 8,200 1,200 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year en 31. (Amounts to be deducted should be indicated with a minus sign.)

Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for year: Depreciation expense $36,900 Gain on disposal of equipment 21,510 Net income 222,200 The changes in the current asset and liability accounts for the year are as follows:   Increase(Decrease) Accounts receivable $5,740 Inventory (3,270)   Prepaid insurance (1,230) Accounts payable (3,890) Income taxes payable 1,230 Dividends payable 860 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.   Statement of Cash Flows (partial) For the year ended xxx Cash flows from operating activities:     Net income  $fill in the blank edc573f62020fa6_2   Adjustments to reconcile net income to net cash flow from operating activities:     Depreciation  fill in the blank…

Curwen Inc. reported net cash flow from operating activities of $145,700 on its statement of cash flows for a recent year ended December 31. The following information was reported in the Cash flows from operating activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $2,900 Decrease in inventories 7,300 Depreciation 11,200 Gain on sale of investments 5,000 Increase in accounts payable 2,000 Increase in prepaid expenses 1,200 Increase in accounts receivable 5,500 a. Determine the net income reported by Curwen Inc., for the year ended December 31.

The Operating activities section of Filler-Up, Inc.’s Statement of Cash Flows for the year ended December 31, 20x2 and 20x1, includes the following items:   (in $ millions) Fye 20x2 Fye 20x1 Cash flows from operating activities:     Net earnings $359.7 $314.6 Depreciation 51.2 50.2 Change in accounts receivable; (increase) decrease (42.0) (43.4) Change in accounts payable; increase (decrease) 8.4 16.6 Net cash provided by operating activities $392.6 $329.3                   Required Answer the following questions: Why does the company add back depreciation to compute net cash provided by operating activities? Is depreciation a source of cash? The company reports cash flows associated with accounts receivable. In 20x1, this item is a cash outflow of $43.4 million and in 20x2 this item is a cash outflow of $42.0 million. Explain why this item is on the statement. Did Filler-Up Inc.’s accounts payable increase or decrease during…