Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 12 - Statement of Cash Flows - Brief Exercises: BE12-7

Answer

Calculation of net cash provided by the operating activities under indirect method: Net cash under operating activities: Net Income as per Income statement - 200,000 dollars Add:Decrease in accounts receivables - 80,000 dollars Less: Increase in prepaid expense - (28,000 dollars) Less: Increase in inventory - (40,000 dollars) Net cash provided by operating activates - 212,000 dollars

Work Step by Step

The table indicates about the calculation of net cash provided by the operating activities under indirect method.
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