A company had net income of $252,000. Depreciation expense was $26,000. During the year, accounts receivable and merchandise inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flows from operating activities on the statement of cash flows using the indirect method? *(305K, 224K or 284K) A company had net income of $252,000. Depreciation expense was $26,000. During the year,accounts receivable and merchandise inventory increased by $15,000 and $40,000, respectively.Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. Therewas also a loss on the sale of equipment of $3,000. How much was the net cash flows fromoperating activities on the statement of cash flows using the indirect method?

Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Answered: A company had net income of $252,000.…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5RE: In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts...

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A company had net income of $252,000. Depreciation expense was $26,000. During the year, accounts receivable and merchandise inventory increased by $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much was the net cash flows from operating activities on the statement of cash flows using the indirect method?

*(305K, 224K or 284K)

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