A company reported the following information: 20202019Accounts receivable$50,000$65,000Inventories43,00040,000Accounts payable29,00039,000Net income100,000 Depreciation expense11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2020?a.$92,000b.$109,000c.$111,000d.$113,000

The cash flow statement is an essential part of the financial statements of the organization. It is helpful for the stakeholders that they can identify the organization's financial situation as the firm have a sufficient amount of cash to meet out their obligation. It can be repaired using direct and indirect methods. SO the correct answer d.$113,000

Answered: A company reported the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

A company reported the following information:

	2020	2019
Accounts receivable	$50,000	$65,000
Inventories	43,000	40,000
Accounts payable	29,000	39,000
Net income	100,000
Depreciation expense	11,000

If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2020?

a.$92,000

b.$109,000

c.$111,000

d.$113,000

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions