A new accountant, Costa Good sold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake? (you can ignore taxes).

a) $70

b) $170

c) $450

d) $120

e) $20

Answer rating: 100% (QA)

Cash flow from operating activity under indirect method is f... View the full answer