Chapter 13, Problem 13.4BE

To determine

Cash flows from operating activities:

These refer to the cash received or cash paid in day-to-day operating activities of a company.

Indirect method:

Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.

• Deduct increase in current assets.
• Deduct decrease in current liabilities.
• Add decrease in current assets.
• Add the increase in current liability.
• Add depreciation expense and amortization expense.
• Add loss on sale of plant assets.
• Less gain on sale of plant assets.

To determine: The amount of net cash provided by the operating activities using the indirect method.