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NikAS [45]
4 years ago
15

Bramble Corp. reported net income of $0.85 million in 2022. Depreciation for the year was $136,000, accounts receivable decrease

d $297,500, and accounts payable decreased $238,000. Compute net cash provided by operating activities using the indirect approach.
Business
1 answer:
sweet-ann [11.9K]4 years ago
4 0

Answer:

$1,045,500

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $850,000

Adjustment made:

Add : Depreciation expense $136,000

Add: Decrease in accounts receivable $297,500

Less: Decrease in accounts payable -$238,000

Total of Adjustments $195,500

Net Cash flow provided by Operating activities               $1,045,500

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