The following information is available from the current period financial statements: Net income
$165,000
Depreciation expense
28,000
Increase in accounts receivable
16,000
Decrease in accounts payable
21,000
The net cash flow from operating activities using the indirect method is
A) $230,000
B) $188,000
C) $198,000
D) $156,000

Question

Quizplus · Accepted Answer

Net cash flow from operating activities is calculated as: Net income + Depreciation expense - Increase in accounts receivable - Decrease in accounts payable = $165,000 + $28,000 - $16,000 - $21,000 = $156,000.

The Following Information Is Available from the Current Period Financial