Answer:
$47,000
Explanation:
Computation for the net cash flows from operating activities using the indirect method.
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $28,000
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense $15,000
Increase in Accounts Receivable -$2,500 ($8,000-$10,500)
Decrease in inventory $3,000
($21,000-$18,000)
Increase in accounts payable $5,000
(15000-10000)
Decrease in income taxes payable -$1,500 ($1,000-$2,500)
Net cash flows from operating activities $47,000
Therefore the net cash flows from operating activities using the indirect method is $47,000
