Answer:
$65,250
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $5,000
Adjustment made:
Add : Depreciation expense $48,000
Add: Decrease in accounts receivable $13,000 ($31,000 - $44,000)
Less: Increase in inventory -$10,700 ($66,000 - $55,300)
Add: Increase in accounts payable $10,700 ($42,400 - $31,700)
Less: Decrease in income tax payable-$750 ($2,650 - $3,400)
Total of Adjustments $60,250
Net Cash flow from Operating activities $65,250
