Answer:
The Net cash is 193.100
Explanation:
To get net cash flow using the indirect method we must make adjustments to the net income.
With the balance data, we get the decrease or increase of the different accounts.
Cash $103,000 $97,100
Decrease in cash 5.900
Accounts receivable 110,000 80,800
Decrease in accounts receivable 29.200
Inventory 159,000 171,500
inventory increased 12.500
Prepaid expenses 26,000 25,000
Decreased Prepaid expenses 1.000
Accrued expenses payable $14,500 $9,100
expenses payable decreased 5.400
Accounts payable 84,500 95,600
accounts payable increased 11.100
It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)
In this case,
Net income 151.400
Adjustment to reconcile the net income to cash
+ Depreciation expense 24.200
- Decrease in cash (5.900)
+ Decrease in accounts receivable 29.200
- inventory increased (12.500)
+ Decreaded Prepaid expenses 1.000
- expenses payable decreased (5.400)
+ accounts payable increased 11.100
Net cash 193.100
