Using the indirect method, calculate the amount of net cash flows from operating activities from the following data:
$\begin{array}{lrr}&2014&2013\
\text { Net Income } & \$ 250,000 & \
\text { Accounts receivable } & 22,000 & 25,000 \
\text { Prepaid expenses } & 3,000 & 5,000 \
\text { Accounts payable } & 14,000 & 15,000 \
\text { Depreciation expense } & 51,000 & \
\text { Amortization expense (Patent) } & 4,000 & \
\text { Dividends declared and paid } & 11,000 &
\end{array}$

Question

Using the indirect method, calculate the amount of net cash flows from operating activities from the following data:
 $\begin{array}{lrr}&2014&2013\
\text { Net Income } & \$ 250,000 & \
\text { Accounts receivable } & 22,000 & 25,000 \
\text { Prepaid expenses } & 3,000 & 5,000 \
\text { Accounts payable } & 14,000 & 15,000 \
\text { Depreciation expense } & 51,000 & \
\text { Amortization expense (Patent) } & 4,000 & \
\text { Dividends declared and paid } & 11,000 &
\end{array}$

Quizplus · Accepted Answer

The Answer of Using the indirect method, calculate the amount of net cash flows from operating activities from the following data:
 $\begin{array}{lrr}&2014&2013\
\text { Net Income } & \$ 250,000 & \
\text { Accounts receivable } & 22,000 & 25,000 \
\text { Prepaid expenses } & 3,000 & 5,000 \
\text { Accounts payable } & 14,000 & 15,000 \
\text { Depreciation expense } & 51,000 & \
\text { Amortization expense (Patent) } & 4,000 & \
\text { Dividends declared and paid } & 11,000 &
\end{array}$

Using the Indirect Method, Calculate the Amount of Net Cash