Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $481,540
Adjustment made:
Add : Depreciation expense $44,200
Add: Amortization expense $4,200
Less: Gain on sale of equipment - $6,200
Less: Increase in accounts receivable - $30,500
Less: Increase in inventory - $25,000
Less: Decrease in accounts payable - $12,500
Less: Decrease in salaries payable - $3,500
Net Cash flow from Operating activities $452,240
