Hoogendoorn and Associates provides consulting services in Amsterdam. In 20X0, net income was 230,000 on revenues

Question:

Hoogendoorn and Associates provides consulting services in Amsterdam. In 20X0, net income was € 230,000 on revenues of € 510,000 and expenses of € 280,000 (€ stands for euro, the European currency). The only noncash expense was depreciation of € 50,000. The company has no inventory.

Accounts receivable increased by € 17,000 during 20X0, and accounts payable and salaries payable were unchanged.

Prepare a statement of cash flows from operating activities. Use the direct method. Omit supporting schedules.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...