Cash flow from operations activities-indirect method An analysis of the 2015 financial statements of Portside Provisions reveals
Question:
Cash flow from operations activities-indirect method An analysis of the 2015 financial statements of Portside Provisions reveals the following:
(a) Accounts payable to suppliers of merchandise decreased by $65,000 during 2015.
(b) Dividends of $135,000 were declared in November 2015, to be paid in January 2016.
(c) Dividends of $120,000, declared in November 2014, were paid in January 2015.
(d) Inventory levels increased by $91,000 during 2015.
(e) Depreciation expense for 2015 amounted to $53,000.
(f) Land, which had a cost of $350,000, was sold in 2015 for $400,000 cash, resulting in a gain of $50,000.
(g) Net income for 2015 was $745,000
Using only the above information, follow the indirect method to compute Portside Provisions net cash flows from operating activities for 2015.
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus