Answer:
$527,610
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is presented below:
Cash flow from Operating activities
Net income $508,000
Adjustment made:
Add : Depreciation expense $57,600
Less: Gain on disposal of equipment -$33,600
Less: Increase in accounts receivable -$8,960
Add: Decrease in inventory $5,120
Less: Decrease in accounts payable -$6,080
Add: Increase in income tax payable $1,410
Add: Increase in dividend payable $2,200
Add: Increase in prepaid insurance $1,920
Net Cash flow from Operating activities $527,610
