Question

Earned net income of $ 72,000 after deducting depreciation of $4,000 and all other expenses. Current assets decreased by $3,000​, and current liabilities increased by $8,000. How much was The Watch Shop's cash provided by operating activities​ (indirect method)?

Answer 1

$87,000

Step-by-step explanation:

The computation of the cash provided by operating activities​ (indirect method) is given below:

Cash flow from Operating activities

Net income $72,000

Add: Depreciation expense $4,000

Add: Current assets decreased $3,000

Add: Current liabilities increased $8,000

Net Cash flow provided by operating activities $87,000