Question

Hemmer Company reported net income for 2018 in the amount of $45,000. The company's financial statements also included the following: Decrease in accounts receivable $ 6,400 Increase in inventory 1,100 Depreciation expense 3,200 What is net cash provided by operating activities?.

Answer 1

$53,500

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 $45,000

Adjustment made:

Add : Depreciation expense $3,200

Add: Decrease in accounts receivable $6,400

Less: Increase in inventory -$1,100

Total of Adjustments $8,500

Net Cash flow from Operating activities $53,500