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7 April, 11:05

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $ 57,000 Accounts payable increased by 23,000 Accounts receivable decreased by 35,000 Inventories decreased by 10,000 Cash dividends paid were 19,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

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  1. 7 April, 11:14
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    Net Cash Flow from Operating Activities = $155,000

    Explanation:

    Cash flow from Operating activities:

    Particular Amount

    Income During the year $57,000

    Adjustments:

    Depreciation $30,000

    Changes in Current assets and liabilities:

    decreased in Accounts receivable $35,000

    decreased in Inventory $10,000

    increased in Accounts payable $23,000

    Net Cash Flow from Operating Activities $155,000

    Note: Dividend paid compute under financing activities.
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