1 The following information is available for XYZ Company: January 1, 2016 Decemb

Question

 1  The following information is available for XYZ Company:                       January 1, 2016       December 31, 2016  ASSETS   Cash                     $25,000               $30,000   Accounts receivable       80,000                74,000   Supplies                   7,000                10,000   Land                      40,000                50,000   Equipment                 20,000                20,000   Accumulated depreciation   6,000                 8,000   Patent                         0                 7,000  LIABILITIES + EQUITY   Accounts payable         $15,000               $19,000   Short-term notes payable  22,000                18,000   Salaries payable           7,000                 1,000   Common stock              40,000                50,000   Retained earnings         82,000                95,000  During 2016, XYZ Company paid dividends of $12,000 and recorded depreciation expense of $2,000.  Using the indirect method, calculate the net cash flow from operating activities for 2016. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). Do not use decimals in your answer. 

Explanation / Answer

cash flow from operating activities:

net income 13000

+ depriciation 2000

+ increas in payable 4000

- decrease in note payable -4000

-decrese in salary payable -6000

+ decrease in a/c receivable 6000

- increase in supplies 3000

Net Cash flow from operating activity 18000

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