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4 years ago

The income statement disclosed the following items for 2016:

Business

1 answer:

-Dominant- [34]4 years ago

6 0

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

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Answer:

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Giving the following information:

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