Question Details

Adjustments to reconcile net income to net cash 



1
Dutton Company prepared the tabulation below at December 31, 2011.

Net Income		$255,000

Adjustments to reconcile net income to net cash provided by operating activities:

	Depreciation expense, $25,000			

	Decrease in accounts receivable, $50,000			

	Increase in inventory, $12,000			

	Decrease in accounts payable, $8,600			

	Increase in income taxes payable, $1,500			

	Loss on sale of land, $5,000			

	Net cash provided by operating activities			

 
Instructions
Show how each item should be reported in the statement of cash flows. Use parentheses for deductions.


2
Daimler Enterprises reported cash flow from operations of $312,000. The company made capital expenditures of $112,000 and paid dividends of $34,000. 

Instructions
Compute free cash flow.





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