Fine Furniture Company had a net income of $50,000. Accounts receivable increased by $30,000; inventory decreased by $20,000; amounts payable increased by $4,000; and salaries payable decreased by $1,000. The amount of cash flow from continuing operating activities under the indirect method is

The amount of cash flow from continuing operating activities under the indirect method is $ 95,000.

Step-by-step explanation:

The amount of cash flow from continuing operating activities under the indirect method can be calculated by adding

Accounts receivable inventory decreased

into the net income

while the

amounts payable salaries payable

are subtracted from the net income

so, our expression will be:

cash flow = Net income + Accounts receivable + inventory decreased -

amounts payable - salaries payable

= $50,000 + $30,000 + $20,000 - $4,000 - $1,000

= $ 95,000.

inventory decreased $20,000