Software Distributors reports net income of $60,000. Included in that number is depreciation expense of...

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imageSoftware Distributors reports net income of $60,000. Included in that number is depreciation expense of $12,500 and a loss on the sale of land of $5,500. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $30,000, a decrease in inventory of $17,500, and an increase in accounts payable of $50,000.

Exercise 11-9 Calculate operating activities-indirect method (L011-2) Software Distributors reports net income of $60,000. Included in that number is depreciation expense of $12,500 and a loss on the sale of land of $5,500. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $30,000, a decrease in inventory of $17,500, and an increase in accounts payable of $50,000. Required Prepare the operating activities section of the statement of cash flows using the indirect method SOFTWARE DISTRIBUTORS Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities

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