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Question - The White Company uses the indirect method of presenting the Statement of Cash Flows. At 12/31/2021, an investigation of their 2020 and 2021 Balance Sheets reveals that the balance in Net Accounts Receivable has decreased by $100,000 from 2020 to 2021 and the balance in Accounts Payable has decreased by $75,000 from 2020 to 2021. The balance in Net Property, Plant and Equipment has decreased by $15,000 and they noted that no property, plant or equipment was purchased or sold during 2021.
REQUIRED - Prepare the Operating Cash Flow Section of the 2021 Statement of Cash Flows for the White Company by providing the adjustments to reconcile net income of $850,000 to net cash flows provided by operating activities.
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