Royal Corporation uses the indirect method of computing net cash flow from operating activities and reported the following for 2015: accounts receivable decreased by $10,300,merchandise inventory increased by $15,300,accounts payable decreased by $4,000,and income taxes payable increased by $18,800.If Royal Corporation reported net income for 2015 of $157,800 (including $34,800 of depreciation expense),net cash flow from operating activities for 2015 is:
A)$202,400.
B)$132,800.
C)$164,800.
D)$221,700.

Question

Quizplus · Accepted Answer

Net cash flow from operating activities = Net income + Depreciation expense - Increase in current assets + Increase in current liabilities= $157,800 + $34,800 - $15,300 + $4,000= $202,400

Royal Corporation Uses the Indirect Method of Computing Net Cash