Based on the following income statement and balance sheet for Bankowski Corporation, determine the cash flows from operating activities using the indirect method.Bankowski CorporationIncome StatementFor Year Ended December 31, Year 2Sales? $504,000Cost of goods sold $327,600 ?Depreciation expense 33,000 ?Other operating expenses 125,500 (486,100)Other gains (losses):?? Gain on sale of equipment? 5,200Income before taxes? $ 23,100Income tax expense? (4,800Net income?$ 18,300Bankowski CorporationBalance SheetsAt December 31Assets Year 2 Year 1 Cash $ 62,650 $ 55,800 Accounts receivable 21,000 29,000 Inventory 58,000 52,100 Equipment 240,000 222,000
Accumulated depreciation (97,000) ( 96,000) Total assets $284,650 $262,900 ??? Liabilities:?? Accounts payable $ 28,400 $ 23,700 Income taxes payable 1,050 1,200 Total liabilities $ 29,450 $ 24,900Equity:?? Common stock $106,000 $ 106,000 Paid-in Capital in excess of par value 18,000 18,000 Retained earnings 131,200 114,000 Total equity $255,200 $ 238,000Total liabilities and equity $284,650 $ 262,900
What will be an ideal response?
| Bankowski Corporation Cash flows from operating activities (indirect method) For Year Ended December 31, Year 2 | ||
| Net income | ? | $18,300 |
| Adjustments to reconcile net income to net cash | ? | ? |
| provided by operating activities: | ? | ? |
| Decrease in accounts receivable | $ 8,000 | ? |
| Increase in inventory | (5,900) | ? |
| Increase in accounts payable | 4,700 | ? |
| Decrease in taxes payable | (150) | ? |
| Depreciation expense | 33,000 | ? |
| Gain on sale of equipment | (5,200) | ? |
| Total adjustments | ? | 34,450 |
| Net cash provided by operations | ? | $52,750 |
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