Question

Monty Beverage Company reported the following items in the most recent year. Net income $43,000 Dividends paid 5,890 Increase in accounts receivable 11,040 Increase in accounts payable 7,780 Purchase of equipment (capital expenditure) 9,610 Depreciation expense 4,780 Issue of notes payable 22,400 Compute net cash provided by operating activities, the net change in cash during the year. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

Step-by-step explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $43,000

Adjustment made:

Add : Depreciation expenses $4,780

Less: Increase in accounts receivable -$11,040

Add: Increase in accounts payable $7,780

Total of Adjustments $1,520

Net Cash flow from Operating activities $44,520