Volutia Corporation's comparative financial statements included the following amounts for the current year:
Depreciation expense
$102,000
Loss on sale of fixed assets
38,000
Decrease in fixed assets
155,000
Increase in accounts receivable
37,000
Decrease in accounts payable
42,000
Decrease in inventory
65,000
Increase in taxes payable
19,000
Net income
720,000
Prepare the operating activities section of the statement of cash flows using the indirect.
What will be an ideal response?
Answer:
Net income
$720,000
Add: Depreciation expense
102,000
Add: Loss on sale of fixed assets
38,000
Deduct: Increase in accounts receivable
(37,000)
Deduct:Decrease in accounts payable
(42,000)
Add: Decrease in inventory
65,000
Add: Increase in taxes payable
19,000
Net cash flows from operating activities
865,000
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