Laser World reports net income of $590,000. Depreciation expense is $44,000, acc

Question

Laser World reports net income of $590,000. Depreciation expense is $44,000, accounts receivable increases $11,000, and accounts payable decreases $24,000 Calculate net cash flows from operating activities using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Answer is complete but not entirely correct. LASER WORLD Statement of Net Cash Flows (partial) Cash flows from operating activities 44,000 24,0000 Net income $ 590,000 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Decrease in accounts payable 11,000 Net cash flows from operating activities $669,000

Explanation / Answer

Cash flows from operating activiities Net incoe 590,000 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense 44000 Increase in AR (11000) Decrease in AP (24000) Net cash flow from operating activities $599000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.