Given the following information, prepare a Cash Flow Statement for Netflix, Inc. for the year ending December
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Question:
Given the following information, prepare a Cash Flow Statement for Netflix, Inc. for the year ending December 31, 2023:
- Net income: $700,000
- Depreciation expense: $100,000
- Increase in accounts receivable: $50,000
- Decrease in inventory: $20,000
- Increase in accounts payable: $30,000
- Purchase of equipment: $200,000
- Issuance of common stock: $150,000
Required:
- Prepare the Cash Flow Statement using the indirect method.
- Discuss the significance of cash flow from operating activities.
- Explain how the Cash Flow Statement complements the Income Statement and Balance Sheet in financial analysis.
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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