In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 57,000 Accounts payable increased by 23,000 Accounts receivable decreased by 35,000 Inventories decreased by 10,000 Cash dividends paid were 19,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

Question

Business

Aires

12 October, 03:47

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 57,000 Accounts payable increased by 23,000 Accounts receivable decreased by 35,000 Inventories decreased by 10,000 Cash dividends paid were 19,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

+4

Answers (1)

Know the Answer?

Terrence Chung · Answer 1

Net Cash Flow from Operating Activities = $155,000

Explanation:

Cash flow from Operating activities:

Particular Amount

Income During the year $57,000

Adjustments:

Depreciation $30,000

Changes in Current assets and liabilities:

decreased in Accounts receivable $35,000

decreased in Inventory $10,000

increased in Accounts payable $23,000

Net Cash Flow from Operating Activities $155,000

Note: Dividend paid compute under financing activities.