The net income reported on the income statement for the current year was $40,000.Depreciation Expense recorded on fixed assets was $21,000.What is the net cash flow from operations that would appear on a cash flow statement using the indirect method?
A)$40,000
B)$61,000
C)$21,000
D)$19,000

Question

Quizplus · Accepted Answer

To calculate net cash flow from operations using the indirect method, we start with net income and adjust for non-cash items, including depreciation expense. 
Net cash flow from operations = Net Income + Depreciation Expense = $40,000 + $21,000 = $61,000. 
Therefore, the correct answer is B.

The Net Income Reported on the Income Statement for the Current