Given the following information, prepare a Cash Flow Statement for Netflix, Inc. for the year ending December 31, 2023:
•Net income: $400,000
•Depreciation expense: $50,000
•Increase in accounts receivable: $30,000
•Increase in accounts payable: $20,000
•Purchase of equipment: $100,000
•Issuance of common stock: $150,000
Required:
1.Prepare the Cash Flow Statement using the indirect method.
2.Explain the significance of cash flow from operating activities.