Question

Novak Corp. reported net income of $1.20 million in 2022. Depreciation for the year was $192,000, accounts receivable decreased $420,000, and accounts payable decreased $336,000. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

$1,476,000

Step-by-step explanation:

According to the scenario, computation of the given data are as follows:-

Statement of The Cash Flow 31 December,2022

Particular Amount Total Amount

Net Income $1,200,000

Depreciation $192,000

Accounts receivable Decrease $420,000

Accounts payable Decrease ($336,000)

$276,000

Net cash provided by operating activities $1,476,000