An analysis of the balance sheet and income statement of Sanchez Company revealed the following: net income,

Question:

An analysis of the and income statement of Sanchez Company revealed the following: net income, $15,400; depreciation expense, $45,000: decrease in accounts receivable, $32,500: increase in inventory, $12,100: increase in accounts payable, $15,200: and a decrease in interest payable of $800.

Required:
Compute the net cash flows from operating activities using the indirect method.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...