Answer:
Net cash from operating activities is $57,220.
Explanation:
Using the indirect method, the Operating Activities section of the statement of cash flows can be prepared as follows:
Statement of Cash Flows
(Operating Activities Section Only)
<u>Details $ </u>
Net income 35,890
Adjustment to reconcile net income:
Depreciation expense 18,040
(Increase) decrease in current assets:
Increase in accounts receivable ($34,630 - $43,060) (8,430)
Decrease in inventory ($39,870 - $30,370) 9,500
Increase in prepaid rent ($15,120 - $16,820) (1,700)
Increase (decrease) in current liabilities:
Increase in accounts payable ($25,610 - $19,430) 6,180
Decrease in income taxes payable ($5,970 - $10,500) (4,530)
Increase in interest payable ($14,710 - $12,440) <u> 2,270 </u>
Net cash from operating activities <u> 57,220 </u>
