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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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Determining Net Cash Flow from Operating Activities

Brandon Inc. reported the following items in its balance sheet and income statement: net income, $105,600; gain on disposal of equipment, $10,800; increase in accounts receivable, $6,200; decrease in accounts payable, $14,900; and increase in common stock, $50,000.

Required:

Compute the net cash flows from operating activities using the indirect method.

To determine

Introduction:

Income from operating activities is for the most part determined by the accompanying equation: Cash Flow from Operating Activities = Net pay + Noncash Expenses + Changes in Working Capital. The noncash costs are normally the deterioration or potentially amortization costs recorded on the association’s pay explanation.

To compute:

Compute the net cash flows from operating activities using the indirect method.

Explanation
Particular Detail Amount ($)
Net income from the income statement

Less: Gain on disposal of equipment

Operating profit before work...

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