Question

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was	$	88,000
Accounts payable decreased by		36,000
Accounts receivable increased by		43,000
Inventories increased by		23,000
Depreciation expense was		66,000

Net cash provided by operating activities was:

Answer 1

Cash flow from Operating activities	Amount(in $)
Net Income	88,000
Add:Depreciation on Assets	66,000
Less:Increase in Accounts Receivable	(43,000)
Less:Increase in Inventory	(23,000)
Add:Increase in Accounts Payable	(36,000)
Cash flow from Operating activities	52,000