Question

Macrosoft Company reports net income of $55,000. The accounting records reveal depreciation expense of $70,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $50,000, $11,000, and $13,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Answer 1

Answer:

$99,000

Explanation:

According to the scenario, computation of the given data are as follows,

         Net income  = $55,000

Add- Depreciation expense = $70,000

Less- prepaid rent = $50,000

Add- accounts payable = $11,000

Add- Income tax payable = $13,000

Total = $99,000

Hence, Net cash flow from operating activities = $99,000