Based on the given information, calculate the net cash flow from operating activities using the indirect method.During the previous year, Skyrim Co.reported a net income of $136,500.Its depreciation expense was $38,000 and its accounts payable balance decreased by $29,250.
A) $98,500
B) $174,500
C) $203,750
D) $145,250

Question

Based on the given information, calculate the net cash flow from operating activities using the indirect method.During the previous year, Skyrim Co.reported a net income of $136,500.Its depreciation expense was $38,000 and its accounts payable balance decreased by $29,250. ​
A) $98,500
B) $174,500
C) $203,750
D) $145,250

Quizplus · Accepted Answer

The net cash flow from operating activities can be calculated using the indirect method by adjusting the net income for non-cash expenses and changes in working capital.

Net income: $136,500 
Add: Depreciation expense: $38,000 
Operating cash flow before changes in working capital: $174,500 
Subtract: Decrease in accounts payable: $29,250

Net cash flow from operating activities: $145,250

Based on the Given Information, Calculate the Net Cash Flow