Garagiola Company had net income in the current year of $470,000. Depreciation expense for the year totaled

Question:

Garagiola Company had net income in the current year of $470,000. Depreciation expense for the year totaled $67,000. During the year the company experienced an increase in accounts receivable (all from sales to customers) of $35,000 and an increase in accounts payable (all to suppliers) of $56,000. Compute the amount of cash provided by or used for operating activities by the indirect method.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...