Question: 4. Prepare the cash flows from operating activities using the indirect method Cash Flow from operating activities Indirect Method Net income $ 220,000 Add: Depreciation
4. Prepare the cash flows from operating activities using the indirect method
| Cash Flow from operating activities |
|
| Indirect Method |
|
|
|
|
| Net income | $ 220,000 |
| Add: Depreciation | $ 25,600 |
| Add: amortization of patents | $ 18,500 |
| Less: Increase in Accounts Receivables (32300-31100) | $ (1,200) |
| Add: Decrease in inventories (56700-54800) | $ 1,900 |
| Less: Decrease in Tax Payable (39600-37900) | $ (1,700) |
| Less: Increase in Prepaid (4000-3500) | $ (500) |
| Add: Increase in Accounts payable (46000-42900) | $ 3,100 |
| Less: Decrease in wages Payable (23600-21400) | $ (2,200) |
| Net Cash flow from operating activities | $ 263,500 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help