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3 years ago

PEACH COMPUTER

Business

1 answer:

Elden [556K]3 years ago

6 0

Answer:

$121,600

Explanation:

The preparation of the Cash Flows from Operating Activities - Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $88,000

Add : Depreciation expense $46,000

Add: Decrease in accounts receivable $4,600

Less: Increase in inventory -$18,000

Add: Decrease in prepaid rent -$1,600

Add: Increase in accounts payable $6,000

Less: Decrease in income tax payable -$3,400

Net Cash flow from Operating activities $121,600

The cash outflow represents in minus sign while the cash inflow presents in a positive sign

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