Question

The following information is available from the current period financial statements: Net income $150,000 Depreciation expense 28,000 Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 The net cash flow from operating activities using the indirect method is Group of answer choices $141,000 $173,000 $117,000 $215,000

Answer 1

Answer:

$141,000

Explanation:

Given the above information, the net cash flow is computed as shown below

= Net income + Depreciation expense - Increase in accounts receivables - Decrease in accounts payable

= $150,000 + $28,000 - $16,000 - $21,000

= $141,000

Therefore, the net cash flow from operating activities using the indirect method is $141,000