Reference no: EM132807012
The following information is available from the current period financial statements:
Net income $150,000
Depreciation expense 28,000
Increase in accounts receivable 16,000
Decrease in accounts payable 21,000
Problem 1: The net cash flow from operating activities using the indirect method is
a. $117,000
b. $141,000
c. $173,000
d. $215,000
Problem 2: A building with a book value of $ 46,000 sold for $51,000, cash using the indirect method, this transaction should show on the statement of cash flows as follows:
a. an increase of $46,000 from investing activities
b. an increase of $51,000 from investing activities and a deduction from net income of $5,000
c. an increase of $51,000 from investing activities
d. an increase of $46,000 from investing activities and an addition to net income of $5,000