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2 years ago

northeast incorporated is preparing the company's statement of cash floes foe the fiscal net income 182000

Business

1 answer:

brilliants [131]2 years ago

8 0

The calculation looks like this:

182000 in net income

Less: Equipment sales revenue (12300)

Add: 50,000 in depreciation costs

Less: An increase in stock (35400)

Add: Decline in receivables by 28800

Add: 23700 more dollars in accounts payable

$236,800 in cash flow from operating operations

As a result, we may say that $236,800 is the total amount of cash flows from operating operations calculated using the indirect technique.

Cash Flow
The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow. Money spent and money received reflect inflows and outflows, respectively.
Fundamentally, a company's capacity to produce positive cash flows, or more specifically, its capacity to optimize long-term free cash flow, determines its ability to create value for shareholders (CFC). FCF is the cash a company generates from its regular business activities after deducting any funds used for capital expenditures .

To learn more about Cash Flow

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3 years ago

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Answer:

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