Krakow Corporation reported 2010 net income of $450,000, including the effects of depreciationexpense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 wasborrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities usingthe indirect method for 2010 was:$570,000$520,000$470.000$440,000 Problem 1Krakow Corporation reported 2010 net income of $450,000, including the effects of depreciationexpense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 wasborrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities usingthe indirect method for 2010 was:a. $570,000b. $520,000c. $470,000,d. $440,000

Statement of cash flow is a financial statement that includes inflow and outflow of cash takes place…

expense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities using the indirect method for 2010 was: $570,000 $520,000 $470.000 $440,000

expense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities using the indirect method for 2010 was: $570,000 $520,000 $470.000 $440,000

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 12P

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Question

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Krakow Corporation reported 2010 net income of $450,000, including the effects of depreciation
expense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 was
borrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities using
the indirect method for 2010 was:

$570,000
$520,000
$470.000
$440,000

Problem 1
Krakow Corporation reported 2010 net income of $450,000, including the effects of depreciation
expense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 was
borrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities using
the indirect method for 2010 was:
a. $570,000
b. $520,000
c. $470,000,
d. $440,000

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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