The Avett Brothers had net income of $225,000 for the year just ended. The following information was available from The Avett Brothers recent year. Decrease in inventory $30,000 Depreciation Expense 12,000 Decrease in accounts receivable 26,000 Increase in accounts payable 17,000 Decrease in taxes payable 6,000 Loss from sale of equipment 8,000 The Avett Brothers' net cash flow from operations using the indirect method was $312,000 $200.000
The Avett Brothers had net income of $225,000 for the year just ended. The following information was available from The Avett Brothers recent year. Decrease in inventory $30,000 Depreciation Expense 12,000 Decrease in accounts receivable 26,000 Increase in accounts payable 17,000 Decrease in taxes payable 6,000 Loss from sale of equipment 8,000 The Avett Brothers' net cash flow from operations using the indirect method was $312,000 $200.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Indirect method.
ignore the red marks it was another problem.
this is practice just want to check my work
Transcribed Image Text:until Feb 20 at 11:59pm
The Avett Brothers had net income of $225,000
for the year just ended. The following
information was available from The Avett
Brothers recent year.
Decrease in inventory
$30,000
Depreciation Expense
12,000
Decrease in accounts receivable
26,000
Increase in accounts payable
17,000
Decrease in taxes payable
6,000
Loss from sale of equipment
8,000
The Avett Brothers' net cash flow from
operations using the indirect method was
$312,000
$200.000
Transcribed Image Text:The Indirect Method of Operating Cash Flows
Net Income
120
+ Depreciation Expense +as
+ Losses (such as on sale of assets).
Gains (such as on sale of assets)-10
Increases during year of non-cash operating assets*-4
+ Decreases during year of non-cash operating assets* +3
+ Increases during year of operating liabilities +3
- Decreases during year of operating liabilities-6
Net cash flows from operating activities |3 I
*In our class, you can assume all current assets are operating.
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