October
Corporation reported net income of $46,000 in 2012. Depreciation expense was
$17,000 and unrealized holding losses on temporary investments (FV-NI) were
$3,000. The following accounts changed as indicated in 2012:
Accounts
Receivable ………………………………………... $11,000
increase
Investments
in Bonds, at Amortized Cost …………………… 16,000
increase
Future
Income Tax Assets …………………………………… 2,000
decrease
Inventory
…………………………………………………….. 7,400 increase
Non-Trade
Note Payable …………………………………….. 15,000 decrease
Accounts
Payable ……………………………………………. 9,300
increase
|
Cash
flows from operating activities
|
|
|
|
Net income
|
|
$46,000
|
|
Adjustments to reconcile net income to net
|
|
|
|
cash provided by operating activities
|
|
|
|
Depreciation expense
|
$17,000
|
|
|
Unrealized
loss on temporary investments
|
3,000
|
|
|
Increase in accounts payable
|
9,300
|
|
|
Increase in accounts receivable
|
(11,000)
|
|
|
Decrease in future tax assets
|
2,000
|
|
|
Increase in inventory
|
(7,400)
|
12,900
|
|
Net
cash provided by operating activities
|
|
$58,900
|
