Question

The following information is available from the current period financial statements: Net income $ 123,054 Depreciation expense 26,854 Increase in accounts receivable 24,717 Decrease in accounts payable 16,848 Determine the net cash flow from operating activities using the indirect method. Select the correct answer.

Answer 1

Answer:

$108,343

Explanation:

Cash flow statement using the indirect method

                                                                          Amount in $

Net income                                                            123,054

Depreciation expense                                           26,854

Increase in accounts receivable                           (24,717)

Decrease in accounts payable                             (16,848)

net cash flow from operating activities                 108,343  

The net cash flow from operating activities using the indirect method is $108,343.