Statement of Cash flow – Indirect method
For Year 2
Operating Activities:-
Net Income…………………………………………………………………………… $63
Adjustment of convert net income to a cash basis:-
Depreciation and amortization charges……………………………….. $ 24
Increase in Account receivable…………………………………………….. (100)
Decrease in Inventory………………………………………………………….. 50
Increase in Prepaid Expenses……………………………………………….. (4)
Increase in Account Payable…………………………………………………. 80
Decrease in Accrued liabilities………………………………………………. (12)
Increase in Deferred Income Taxes………………………………………. 6
Gain on sale of Investment…………………………………………………… (7)
Loss on sale of Equipment……………………………………………………. 4 __ 41___
