After Analyzing the Following Statement of Cash Flows
1 $\quad$

question 15

Essay

After analyzing the following statement of cash flows
1.State the method Pet Halt Services uses to prepare its operating section of the statement of cash flows and explain how you arrived at your answer.
2.Explain why depreciation expense is added back to net income in the operating section of the statement of cash flows.
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Pet Halt Services }$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Statement of Cash Flows (Partial) }$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { For the Month ending January } 31,2012$

$\begin{array}{lr}\text {Cash flows from Operating Activities:}\\\text {Net Incone}& \$ 120,000 \\\text {Adjustments to reconcile net income to cash}\\\text {provided (used) by operating activities}\\\text { Depreciation expense } & 18,000 \\\text { Increase in accounts receivable } & (29,000) \\\text { Increase in accounts payable } & 33,000 \\\text { Net cash provided by (used for) operating activities } & \underline{\$ 142,000}\\\end{array}$

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Definitions:

Skinner Box

An experimental apparatus designed by B.F. Skinner for studying behavioral conditioning in animals, typically involving a lever and a food dispenser.

Superstitious Behaviors

Actions that are performed based on the irrational belief that they will influence future events, despite the lack of a logical connection.

Pigeons

Birds of the family Columbidae, known for their distinctive cooing sound, and frequently studied in behavioral psychology for their learning capabilities.

Operant Conditioning

is a method of learning that uses rewards and punishments for behavior, which increases or decreases the likelihood of that behavior being repeated.