Company officials for the Renalvi Corporation are preparing financial statements for Year One and have already produced

[answerhappygod]

Company officials for the Renalvi Corporation are preparingfinancial statements for Year One and have already produced anincome statement, balance sheet, and statement of stockholders’equity. They are now beginning the process of preparing a statementof cash flows and are working on the operating activitiessection. They have chosen to report this information by useof the indirect method.
Use the company’s income statement for the period provided inthe resources.
During that year, accounts receivable went up to $23,000,inventory went down $8,000, accounts payable went up to $6,000,prepaid rent went down $5,000, and salary payable went down$9,000.
Within Renalvi’s operating activities on the statement of cashflows, the company begins by reporting net income and then makescertain adjustments to arrive at the cash received from operatingactivities.
What adjustment is made to net income for each of the followingif the indirect method is used?
Enter the adjustment as a positive number.
Add or subtract
Adjustment to Net Income
Accounts receivable went up$23,000
Depreciation expense was$10,000
Inventory went down$8,000
Gain on sale of equipment was $40,000
Accounts payable went up$6,000
Prepaid rent went down $5,000
Salary payable went down $9,000
Net cash used or provided by operatingactivities
Additional information
Renalvi Corporation Income Statement
Sales
$500,000
Cost of Goods Sold
(260,000)
Rent Expense
(30,000)
Salary Expense
(70,000)
Depreciation Expense
(10,000)
Gain on Sale of Equipment
40,000
NetIncome
$170.000