Reference no: EM131764399

Indirect calculation of operating cash flows

Video Corporation's balance sheet revealed the following account balance information:

Account	Dec. 31, 20X6	Dec. 31, 20X5
Accounts receivable	$52,000	$57,000
Merchandise inventory	75,000	68,000
Accounts payable	22,000	19,500

The accrual-basis net income was $109,000. In computing net income, the company recorded $13,600 of depreciation expense; there were no gains or losses from investing and financing activities.

On the basis of the preceding information, calculate Video's cash flows from operating activities by using the indirect method.

• Net Income?
• Accounts receivable?
• Inventory?
• Accounts Payable?
• Depreciation?
• Cash flow from operating activities?