Question

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 57,000 Accounts payable increased by 23,000 Accounts receivable decreased by 35,000 Inventories decreased by 10,000 Cash dividends paid were 19,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

Answer 1

Answer:

Net Cash Flow from Operating Activities = $155,000

Explanation:

              Cash flow from Operating activities:          

Particular                                                        Amount      

Income During the year                         $57,000  

Adjustments :    

Depreciation                                                   $30,000  

Changes in Current assets and liabilities:    

decreased in Accounts receivable           $35,000  

decreased in Inventory                                   $10,000  

increased in Accounts payable                   $23,000  

Net Cash Flow from Operating Activities   $155,000  

Note: Dividend paid compute under financing activities.