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Pakola Company had net income in the current year of Rs. 430,000,000. Depreciation expense for the year totaled Rs. 670,000. During the year the company experienced an increase in accounts receivable (all from sales to customers) of Rs. 350,000 and an increase in accounts payable (all to suppliers) of Rs. 560,000.                                                                                                                      Requirement   Compute the amount of cash provided by or used for operating activities by the indirect method.

Pakola Company had net income in the current year of Rs. 430,000,000. Depreciation expense for the year totaled Rs. 670,000. During the year the company experienced an increase in accounts receivable (all from sales to customers) of Rs. 350,000 and an increase in accounts payable (all to suppliers) of Rs. 560,000.                                                                                                                      Requirement   Compute the amount of cash provided by or used for operating activities by the indirect method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q5. Pakola Company had net income in the current year of Rs. 430,000,000. Depreciation expense for the year totaled Rs. 670,000. During the year the company experienced an increase in accounts receivable (all from sales to customers) of Rs. 350,000 and an increase in accounts payable (all to suppliers) of Rs. 560,000.                                                                                                                   

 

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Compute the amount of cash provided by or used for operating activities by the indirect method.

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