Asked by justin motley on May 19, 2024
Verified
Plexis Company reported net income of $148000. For 2016 depreciation was $45000 and the company reported a gain on sale of investments of $12000. Accounts receivable increased $25000 and accounts payable decreased $23000.
Instructions
Compute net cash provided by operating activities using the indirect method.
Indirect Method
A way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions.
Accounts Receivable
Outstanding payments due to a company from its customers for delivered goods or services.
Accounts Payable
Liabilities or the amount of money owed by a company to its creditors and suppliers for goods and services purchased on credit.
- Engage direct and indirect methods to assess net cash inflow from operating activities.
- Appraise the effect of adjustments in balance sheet accounts on cash operations.
Verified Answer
Learning Objectives
- Engage direct and indirect methods to assess net cash inflow from operating activities.
- Appraise the effect of adjustments in balance sheet accounts on cash operations.
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