Garton Company had net income of $195,000 in 2020.Depreciation expense for the year is $50,000.During the year, Accounts Receivable increased $8,000 and Prepaid Expenses decreased $1,000.The company also sold equipment at a loss of $3,000.
Instructions
Calculate net cash flows from operating activities using the indirect method.

Question

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The Answer of Garton Company had net income of $195,000 in 2020.Depreciation expense for the year is $50,000.During the year, Accounts Receivable increased $8,000 and Prepaid Expenses decreased $1,000.The company also sold equipment at a loss of $3,000.
Instructions
Calculate net cash flows from operating activities using the indirect method.

Garton Company Had Net Income of $195,000 in 2020