Question

The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It...

The Garfield Ltd company uses the indirect method for preparing its statement of cash flows. It reported a net income of $100,000 for the year 2016.

During the year 2016, the working capital accounts were changed as follows:

Increase in accounts receivable: $22,000

Increase in accounts payable: $18,600

Increase in inventory: $14,800

Decrease in non-trade notes payable: $30,000

Increase in available for sale securities: $32,000

The depreciation expense was $34,000 for the year 2016.

Required:

Compute net cash provided (used) by operating activities using the indirect method.

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