Green Forest Corp.s 2020 income statement showed the following: profit, $292,600; depreciation expense, building, $43,000; depreciation expense,

Question:

Green Forest Corp.’s 2020 income statement showed the following: profit, $292,600; depreciation expense, building, $43,000; depreciation expense, equipment, $6,630; and gain on sale of equipment, $7,000. An examination of the company’s current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $14,550; merchandise inventory decreased $43,000; prepaid expenses increased $3,030; accounts payable decreased $7,430; and other current payables increased $1,190. Use the indirect method to calculate the cash flow from operating activities.

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...

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