Answer:
Adolphus, Inc.
Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
= $186,000.
Explanation:
a) Data and Calculations:
Total revenues = $850,000
Total expenses 720,000
Operating income $130,000
Depreciation = 40,000
Beginning Ending Changes
Accounts receivable $50,000 $40,000 -$10,000
Accounts payable $22,000 $28,000 +$6,000
Operating activities section of the Statement of Cash Flows, 2010:
Net income $130,000
Non-cash expenses:
Depreciation 40,000
Changes in working capital:
Accounts receivable 10,000
Accounts payable 6,000
Net cash inflow = $186,000
