Flynn Company reported a net income of $21,000 for the year ended December 31, 20XX. During the year, accounts receivable decreased $5,000, merchandise inventory increased $11,000, accounts payable increased by $10,000, and depreciation expense of $7,000 was recorded. During 20XX, using the indirect method, cash flows from operating activities are

Question

Lucille White

Business

16 April, 08:50

Flynn Company reported a net income of $21,000 for the year ended December 31, 20XX. During the year, accounts receivable decreased $5,000, merchandise inventory increased $11,000, accounts payable increased by $10,000, and depreciation expense of $7,000 was recorded. During 20XX, using the indirect method, cash flows from operating activities are

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Sandra Avery · Answer 1

Net Cash inflow of $32,000 from operating activites.

Explanation:

Flynn Company

Cash flow statement

For the year ended December 31, 20XX

Cash Flow from operating activities

Net Income $21,000

Dpereciation $7,000

Inventory ($11,000)

Account Receivable $5,000

Account Payable $10,000

Net Cash flow $32,000

So, Net Cash inflow of $32,000 from operating activites.