Question

Dorman Company reported the following data: Net income $225,000 Depreciation expense 25,000 Gain on disposal of equipment 20,500 Decrease in accounts receivable 14,000 Decrease in account payable 3,600 Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Answer 1

Answer:

$239,900

Explanation:

    Cash Flows from Operating Activities section

Particulars                                                      Amount

Net income                                                    $225,000

Add Depreciation expenses                        $25,000

Less Gain on disposal of equipment           $20,500

Add Decrease in accounts receivables       $14,000

Less Decrease in accounts payable            $3,600    

Net cash flow from operating activities    $239,900