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 - Page 663: BE12-5


Calculation of net cash provided by the operating activities using indirect method: Net Income as per Income statement - 2,5000,000 dollars Depreciation expense - 110,000 dollars Add: Decrease in accounts receivable - 350,000 dollars Less: Decrease in accounts payable - (280,000 dollars) Net cash provided by operating activities - 2,680,000 dollars

Work Step by Step

The table indicates about the calculation of net cash under operating activities.
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