E17-5 The current sections of Bellinham Inc.s balance

E17-5

The current sections of Bellinham Inc.'s balance sheets at December 31, 2009 and 2010, are presented here.
Bellinham's net income for 2010 was $153,000. Depreciation expense was $24,000.

2010 2009
Current assets
Cash $105,000 $99,000
Accounts receivable 110,000 89,000
Inventory 158,000 172,000
Prepaid expenses 27,000
22,000

Total current assets $400,000
$382,000


Current liabilities
Accrued expenses payable $15,000 $5,000
Accounts payable 85,000
92,000

Total current liabilities $100,000
$97,000



Instructions

Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2010, using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number eg -45 or parentheses eg (45).)

BELLINGHAM INC,
Partial Statement of Cash Flows
For the Year Ended December 31, 2010

Cash flows from operating activities
Increase in prepaid expensesDecrease in accounts payableDepreciation expenseIncrease in accounts receivableDecrease in inventoryDecrease in accrued expenses payableIncrease in accrued expenses payableDecrease in accounts receivableIncrease in inventoryIncrease in accounts payableNet incomeDecrease in prepaid expenses $
Adjustments to reconcile net income
to net cash provided by operating activities
Increase in accrued expenses payableIncrease in accounts receivableIncrease in accounts payableDecrease in prepaid expensesDecrease in accounts payableDecrease in accounts receivableIncrease in inventoryDecrease in accrued expenses payableDepreciation expenseNet incomeDecrease in inventoryIncrease in prepaid expenses $
Increase in accounts receivableDepreciation expenseDecrease in prepaid expensesDecrease in accrued expenses payableIncrease in accounts payableIncrease in prepaid expensesDecrease in accounts payableDecrease in accounts receivableIncrease in accrued expenses payableIncrease in inventoryDecrease in inventoryNet income
Increase in inventoryDecrease in accrued expenses payableDecrease in prepaid expensesDecrease in inventoryDecrease in accounts receivableIncrease in accounts payableIncrease in prepaid expensesIncrease in accrued expenses payableDecrease in accounts payableNet incomeDepreciation expenseIncrease in accounts receivable
Net incomeDecrease in accounts receivableIncrease in accrued expenses payableDepreciation expenseIncrease in inventoryDecrease in prepaid expensesDecrease in accounts payableDecrease in accrued expenses payableIncrease in accounts payableIncrease in accounts receivableDecrease in inventoryIncrease in prepaid expenses
Decrease in accounts receivableDepreciation expenseIncrease in prepaid expensesIncrease in accounts receivableIncrease in accounts payableDecrease in accounts payableDecrease in inventoryDecrease in accrued expenses payableIncrease in accrued expenses payableIncrease in inventoryDecrease in prepaid expensesNet income
Increase in inventoryIncrease in accrued expenses payableDepreciation expenseNet incomeDecrease in accounts payableDecrease in accounts receivableDecrease in accrued expenses payableIncrease in accounts receivableDecrease in inventoryIncrease in prepaid expensesIncrease in accounts payableDecrease in prepaid expenses


Net cash usedprovided by operating activities $