OMD Equipment, Inc. reported the following data for 2014: Income Statement: Net Income .............. $ 44,000 Depreciation

Question:

OMD Equipment, Inc. reported the following data for 2014:

Income Statement:

Net Income .............. $ 44,000

Depreciation Expense ..........8,000

Balance Sheet:

Increase in Accounts Receivable .....7,000

Decrease in Accounts Payable ......4,000

Compute OMD’s net cash provided by operating activities—indirect method.

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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...