During 2020, Diaz Corporation had net income of $41,000. Included on its income statement were depreciation expense of $2,300 and amortization expense of $300. During the year, Accounts Receivable increased by $3,400, Inventories decreased by $1,900, Prepaid Expenses decreased by $200, Accounts Payable increased by $5,000, and Accrued Liabilities decreased by $450. Determine net cash flows from operating activities using the indirect method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During 2020, Diaz Corporation had net income of $41,000.
Included on its income statement were depreciation expense of $2,300 and amortization expense
of $300.
During the year, Accounts Receivable increased by $3,400, Inventories decreased by $1,900,
Prepaid Expenses decreased by $200, Accounts Payable increased by $5,000, and Accrued
Liabilities decreased by $450.
Determine net cash flows from operating activities using the indirect method.
Transcribed Image Text:During 2020, Diaz Corporation had net income of $41,000. Included on its income statement were depreciation expense of $2,300 and amortization expense of $300. During the year, Accounts Receivable increased by $3,400, Inventories decreased by $1,900, Prepaid Expenses decreased by $200, Accounts Payable increased by $5,000, and Accrued Liabilities decreased by $450. Determine net cash flows from operating activities using the indirect method.
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