Brief Exercise 11-29 (Algorithmic) Determining Net Cash Flow from Operating Activities Burch Company reported the following items in its balance sheet and income statement: increase in cash account, $10,000; increase in accounts receivable, $20,000; increase in inventory, $15,000; decrease in accounts payable, $2,000; decrease in income taxes payable, $2,000; net income, $40,000; depreciation expense, $15,000. Required: Compute the net cash flows from operating activities using the indirect method. 24,000 X Feedback Check My Work The calculation of net cash flow from operating activities requires adjustments to net income for noncash items and changes in current assets and liabilities. Start with net income and consider any noncash items. Next, analyze the changes in the balance sheet accounts to determine their effect on cash. (Remember to restate the fundamental accounting equation in terms of changes, separate the cash and noncash assets, and isolate the change in cash.) Finally, total to determine the net cash flow for operating assets