Answered

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At the end of the first year of operations, Meacham's balance sheet showed the following account balances: Accounts Receivable, $13,400; Inventory, $9,400; and Accounts Payable, $14,650. The company's income statement reports net income of $37,400, including depreciation expense of $10,400. Using only the given information, compute Meacham's net cash flow from operating activities using the indirect method.

Sagot :

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Answer:

$39,650

Explanation:

Compute Meacham's net cash flow from operating activities using the indirect

Using this formula

Net cash flow from operating activities=Net income-Accounts Receivable-Inventory+Accounts Payable+depreciation expense

Let plug in the formula

Net cash flow from operating activities=$37,400 - $13,400 - $9,400 + $14,650 + $10,400

Net cash flow from operating activities= $39,650

Therefore Meacham's net cash flow from operating activities using the indirect is $39,650

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