Waterway Company reported 2017 net income of $153,600. During 2017, accounts receivable increased by $14,530 and accounts payable increased by $9,844. Depreciation expense was $41,500. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e. g. -15,000 or in parenthesis e. g. (15,000).) WATERWAY COMPANY

Cash flows from operating activities section;

Net income of                                                                     $153,600

adjustment for Non-Cash Items.

Depreciation expense                                                         $41,500

adjustment for Working Capital Movements

Accounts receivable increase                                           ($14,530)

Accounts payable increase                                                  $9,844

Net  cash flows from operating activities                          $190,414

Explanation:

Cash flows from operating activities reconciles the Net Income from the Profit and Loss Account to the Net Cash flow after adjustment for (1) Non-Cash Items. (2) Items Appearing Elsewhere and (3) Working Capital Movements.

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