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Majestic Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $63.000. At the end of the year, Majestic had a total of $77,000 for these current assets. At the beginning of the year, it owed current liabilities of $48,000, and at year-end, current liabilities totaled $39,000. Net income for the year was $89.000. Included in net income was a $5,000 gain on the sale of land and depreciation expense of $8,000 Show how Majestic should report cash flows from operating activities for the year. The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Majestic Corporation Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 8000 5000 Net cash provided by (used for) operating activities
Majestic Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $63,000. At the end of the year, Majestic had a total of $77,000 for these current assets. At the beginning of the year, it owed current liabilities of $48,000, and at year-end, current liabilities totaled $39,000. Net income for the year was $89,000. Included in net income was a $5,000 gain on the sale of land and depreciation expense of $8,000. Show how Majestic should report cash flows from operating activities for the year. The company uses the indirect method. (Use parentheses or a minus sign for numbers to be subtracted.) Majestic Corporation Statement Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by (used for) operating activities