P9-48. Calculate cash from operating activities using the indirect method. (LO 5)
Ace Corporation had the following information available for 2008.
|
January 1 |
December 31 |
|
|
Accounts receivable |
$80,000 |
$76,000 |
|
Prepaid insurance |
48,000 |
25,000 |
|
Inventory |
76,000 |
50,000 |
Ace Corporation reported net income of $130,000 for the year. Depreciation expense, included on the income statement was $20,800.
Required
Assume this is all the information relevant to the statement of cash flows. Use the indirect method to prepare the cash flows from operating activities section of Ace Corporation’s statement of cash flows for the year ended December 3 1, 2008