(Solution) - Will and Grace Partners reported a profit of 67 000 -(2025 Original AI-Free Solution)

Paper Details

Will and Grace Partners reported a profit of $67 000 for the year. The income statement also showed that depreciation expense was $7 000 and a loss on the sale of a motor vehicle of $3 000. The balance sheet showed an increase in accounts receivable of $4 000 for the year, a decrease in inventory of $3 000 and an increase in accounts payable of $4 000.
Required:
Prepare a reconciliation of operating profit to cash flows from operating activities using the indirect method as illustrated in the chapter.