Arundel Company disclosed the following information for its recent calendar year.

Income Statement Data Selected Year-End Balance Sheet Data

Revenues $120,000 Accounts receivable decrease $29,000

Expenses: Purchased a machine for cash 20,000

Salaries expense 74,000 Salaries payable increase 24,000

Utilities expense 30,000 Other accrued liabilities decrease 15,000

Depreciation expense 29,000 Other expenses 8,500

Net loss $ (21,500)

Requried:

Prepare the operating activities section of the statement of cash flows using the indirect method.

The Cash flows from operating activities is the following:

Net loss ($21,500)

Depreciation expense $29,000

Accounts receivable decrease $29,000

Salaries payable increase $24,000

Accrued liabilities decrease ($15,000)

Net cash provided by operating activities = $45,500

Explanation:

Accordfing to the given data, the operating activities section of the statement of cash flows using the indirect method would be as follows:

Cash flows from operating activities

Net loss ($21,500)

Depreciation expense $29,000

Accounts receivable decrease $29,000

Salaries payable increase $24,000

Accrued liabilities decrease ($15,000)

Net cash provided by operating activities = $45,500

The Net cash provided by operating activities is $45,000