Ask Question
12 November, 01:52

A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

+3
Answers (1)
  1. 12 November, 04:50
    0
    The Net cash is 224.000

    Explanation:

    To get net cash flow using the indirect method we must make adjustment to the net income.

    It depends on the movement if it is added or subtracted to net income

    In this case,

    Net income 252.000

    + Depreciation expense 26.000

    - Increase in accounts receivable (15.000)

    - inventory increased (40.000)

    + decreased Prepaid expenses 2.000

    - accounts payable decreased (4.000)

    + loss on the sale of equipment 3.000

    Net cash 224.000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company had net income of $252,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased by ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers