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Gutierrez Company

Operating Activities Section

Cash flows from operating activities

Net income 225,000

Adjustments for noncash effect:

Depreciation Expenses 45,000

Loss on sale of equipment 5,000 50,000

Changes in current assets and current liabilities

Decrease in Accounts receivable 15,000

Increase in Accounts Payable 17,000

Decrease in prepaid insurance 4,000 36,000

Net cash provided by operating activities. 311,000

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