Brief Exercise 12-5 Manuel, Inc. reported net income of $1.8 million in 2014. De

Question

Brief Exercise 12-5 Manuel, Inc. reported net income of $1.8 million in 2014. Depreciation for the year was $151,830, accounts receivable decreased $367,770, and accounts payable decreased $296,270. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Manuel, Inc. Statement of Cash Flows-Indirect Approach For the Year 2014 $ Adjustments to reconcile net income to $ $ Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

2023330

depreciation is a non cash expense therfore added back

Decrease in accounts payable means there is cash outflow

decrease in accounts receivables means there is cash inflow

Cash flow from operating activities Detail Amount Net Income 1800000 Adjustments to convert net income to cash basis 223330 Depreciation expense - Non cash expense 151830 Decrease in Acccounts Receivables 367770 Decrease in accounts payable -296270 Net Cash flow from operating activities -

2023330

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