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Brums [2.3K]
3 years ago
15

The following data are from the accounting records of Kain Company: Net income $40,000 Depreciation expense 8,000 Decrease in ac

counts payable 1,800 Decrease in merchandise inventory 2,500 Increase in long-term liabilities 10,000 Increase in common stock 25,000 Increase in accounts receivable 4,000 Based on this information, the net cash flows from operating activities on the statement of cash flows using the indirect method would be: a.$51,300. b.$42,100. c.$50,000. d.$44,700.
Business
1 answer:
Arada [10]3 years ago
8 0

Answer:

d. $44,700

Explanation:

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

Cash flow from Operating activities - Indirect method

Net income $40,000

Add : Depreciation expense $8,000

Less: Decrease in accounts payable -$1,800

Add: Decrease in merchandise inventory $2,500

Less:  Increase in accounts receivable -$4,000

Net cash flows from operating activities    $44,700

The long term liabilities and the common stock is not relevant. Hence, ignored it

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

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6 0
3 years ago
Now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to th
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