Question

The net income reported on the income statement for the current year was $315,153. Depreciation recorded on fixed assets and amortization of patents for the year were $32,591 and $11,136, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $42,620 $55,973 Accounts Receivable 128,573 109,672 Inventories 112,117 87,792 Prepaid Expenses 4,229 6,883 Accounts Payable (merchandise creditors) 51,294 73,397 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method

Answer 1

$296,205

Step-by-step explanation:

Cash flows from operating activities

Net income $315,153

Add Depreciation expense $32,591

Add Amortization expense $11,136

Increase in Accounts Receivable ($18,901)

Increase in Inventories ($24,325)

Decrease in Prepaid Expenses $2,654

Decrease in Accounts Payable ($22,103)

Net Cash from Operating Activities $296,205

Therefore,

the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method is $296,205.