Asked by Miranda Wilkerson on Jun 03, 2024
Verified
Alfredo Inc.reports net income of $230,000 for the year ended December 31.It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment.Its comparative balance sheet reveals a $35,500 decrease in accounts receivable,a $15,750 increase in accounts payable,and a $12,500 decrease in wages payable.Calculate the cash provided (used) in operating activities using the indirect method.
A) $376,450.
B) $351,450.
C) $356,450.
D) $319,950.
E) $263,750.
Indirect Method
A way to present the cash flow from operating activities by starting with net income and adjusting for changes in balance sheet items.
Operating Activities
Operating activities are daily business functions related to producing and selling goods or services, which are reflected in a company's cash flow.
Net Income
The total profit of a company after subtracting all expenses, taxes, and losses from total revenue.
- Determine and assess the cash flows resulting from business operations utilizing the direct and indirect methodologies.
- Evaluate how alterations in current asset and liability balances influence cash flows.
Verified Answer
Learning Objectives
- Determine and assess the cash flows resulting from business operations utilizing the direct and indirect methodologies.
- Evaluate how alterations in current asset and liability balances influence cash flows.
Related questions
Bagrov Corporation Had a Net Decrease in Cash of $10,000 ...
Mayweather Reports Net Income of $305,000 for the Year Ended ...
If a Company Is Using the Indirect Method to Prepare ...
The Cash Flows from Operating Activities Are Reported by the ...
Selected Data for the Current Year Ended December 31 Are ...