Final answer:
The net cash flow from operating activities for year 1 can be calculated using the indirect method of preparing the statement of cash flows.
Step-by-step explanation:
The amount of net cash flow from operating activities for year 1 can be calculated using the indirect method of preparing the statement of cash flows. This method starts with the firm's net income and adjusts for non-cash expenses and changes in working capital.
To calculate the net cash flow from operating activities, you need the following information:
- Net Income
- Non-cash Expenses (depreciation, amortization, etc.)
- Changes in Working Capital (changes in current assets and liabilities)
By analyzing these factors and making the necessary adjustments, you can determine the net cash flow from operating activities for year 1