Reference no: EM132807015
Problem 1: Which of the following is not reported as an adjustment to net income when using the indirect method of computing net cash flows from operating activities?
A. Cash dividends paid.
B. A change in accounts receivable.
C. Depreciation.
D. A change in a prepaid expense.
S Company reported net income for 2018 in the amount of $400,000. The company's financial statements also included the following:
Increase in accounts receivable $80,000
Decrease in inventory 60,000
Increase in accounts payable 200,000
Depreciation expense 104,000
Gain on sale of land 148,000
Problem 2: What is net cash provided by operating activities under the indirect method?
A. $432,000.
B. $536,000.
C. $580,000.
D. $832,000.