The following information is available from the current period financial statements: Net income $165,000 Depreciation expense...

The following information is available from the current period financial statements:

Net income

$165,000

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

$188,000

$198,000

$156,000

$230,000

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Expert Solution

Net cash from operating activities:

Net Income	$ 165,000.00
Add: Non cash items
Depreciation	$ 28,000.00
Changes in working capital:
Increase in accounts receivable	$ (16,000.00)
Decrease in accounts payable	$ (21,000.00)
Net cash inflow from Operating activities	$ 156,000.00

ekkarill92 answered 1 year ago

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