Earned net income of $ 72,000 after deducting depreciation of $4,000 and all other expenses. Current assets decreased by $3,000

Question

4 years ago

6

, and current liabilities increased by $8,000. How much was The Watch Shop's cash provided by operating activities (indirect method)?

1 answer:

geniusboy [140] · Answer 1 · 2021-11-19T21:18:29+03:00

Answer:

$87,000

Explanation:

The computation of the cash provided by operating activities (indirect method) is given below:

Cash flow from Operating activities

Net income $72,000

Add: Depreciation expense $4,000

Add: Current assets decreased $3,000

Add: Current liabilities increased $8,000

Net Cash flow provided by operating activities $87,000

Earned net income of $ 72,000 after deducting depreciation of $4,000 and all other expenses. Current assets decreased by $3,000​