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The following information is related to Alpha Company’s fiscal year 2017. Income Statement: Net Income $3,000,000 Depreciation Expense 500,000 Loss on Sale of Plant Assets 50,000 Interest Expense 5,000 Balance Sheet – 12/31/17: Increase (Decrease) Accounts Payable ($40,000) Plant Assets – Purchased 250,000 Plant Assets – Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000 Use this information to prepare a partial Statement of Cash Flows for Alpha Company. Prepare only the section related to Cash Flows from Operating Activities.
Expert Answer
| Cash flow from operating activities: | ||
| Net income | 3000000 | |
| Adjustments to reconcile net income to cash from operating activities: | ||
| Depreciation expense | 500000 | |
| Loss on sale of plant assets | 50000 | |
| Decrease in accounts payable | -40000 | 510000 |
| Cash flow from operating activities | 3510000 |
