Net income was $51,000 for the year. The accumulated depreciation balance increased by $14,000 over the year. There were no sales of fixed assets or changes in noncash current assets or liabilities. Under the indirect method, the cash flow from operations is $37,000.

Question

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The cash flow from operations would be $65,000 because you add back the non-cash expense of depreciation ($14,000) to the net income ($51,000) to calculate cash flow from operations under the indirect method.

Net Income Was $51,000 for the Year