In preparing a company's statement of cash flows using the indirect method, the following information is available: Net income$52,000Accounts payable decreased by 18,000Accounts receivable increased by 25,000Inventories increased by 5,000Depreciation expense 30,000 Net cash provided by operating activities was:

Cash flow statement provided information about the cash inflows and cash outflows of the company.Cash flow statement consists of three activities: Operating activities, investing activities and Financing activities.Cash flow from operating activities is computed by direct method or indirect method.Under indirect method, cash flow from operating activities is computed by adjusting the net income to non-cash expenses and changes in current assets and current liabilities.

Answered: In preparing a company's statement of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In preparing a company's statement of cash flows using the indirect method, the following information is available:


Net income	$	52,000
Accounts payable decreased by		18,000
Accounts receivable increased by		25,000
Inventories increased by		5,000
Depreciation expense		30,000

Net cash provided by operating activities was:

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