Brandon Inc. reported the following items in its balance sheet and income statement: net income, $85,600; gain

Question:

Brandon Inc. reported the following items in its balance sheet and income statement: net income, $85,600; gain on sale of equipment, $12,800; increase in accounts receivable, $15,400; decrease in accounts payable, $25,900, and increase in common stock, $40,000.

Required:

Compute the net cash flows from operating activities using the indirect method.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...