Net income $182,000 Northington, Inc. is preparing the company\'s statement of c

Question

Net income

$182,000

Northington, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from operating activities using the indirect method:

$261,400.

$189,400.

$236,800.

$332,200.

$186,800.

Net income

$182,000

Gain on the sale of equipment 12,300 Proceeds from the sale of equipment 92,300 Depreciation expense—equipment 50,000 Payment of bonds at maturity 100,000 Purchase of land 200,000 Issuance of common stock 300,000 Increase in merchandise inventory 35,400 Decrease in accounts receivable 28,800 Increase in accounts payable 23,700 Payment of cash dividends 32,000

Explanation / Answer

Hi Dear Student !

Following is a solution for your query:-

Answer is $236800

Cash Flows from Operating Activities :-

Net Profit. 182000
Add:
Depreciation(Non Cash) 50000
Decrease in Account Receiv. 28800
Increase in Account Payable. 23700

Less:
Gain on Sale of Equipment. 12300
Increase in Inventories. 35400

Net Cash Flow from. 236800
Operating Activities

Hope it helps you. Pleasure teaching you !

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