The net income reported on the income statement for the current year was $271,51

Question

The net income reported on the income statement for the current year was $271,517. Depreciation recorded on fixed assets and amortization of patents for the year were $31,334 and $11,632, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

$278,704

$316,095

$272,985

$257,507

End Beginning Cash $48,307 $68,023 Accounts receivable 120,807 107,063 Inventories 108,247 86,212 Prepaid expenses 4,352 6,444 Accounts payable (merchandise creditors) 52,490 60,301

Explanation / Answer

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

so answer is c) $272985

Net income 271517 Adjustment to reconcile net income Depreciation exp 31334 Amortization exp 11632 Increase account receivable (13744) Increase inventories (22035) Decrease prepaid exp 2092 Decrease account payable (7811) Net cash flows from operating activities 272985

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