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Indirect calculation of operating cash flows Video Corporation's balance sheet revealed the following account balance information: Account Dec. 31, 20X6 Dec. 31, 20X5 Accounts receivable

Indirect calculation of operating cash flows

Video Corporation's balance sheet revealed the following account balance information:

Account

Dec. 31, 20X6

Dec. 31, 20X5

Accounts receivable

$52,000

$57,000

Merchandise inventory

75,000

68,000

Accounts payable

23,000

19,500

The accrual-basis net income was $111,000. In computing net income, the company recorded $15000 of depreciation expense; there were no gains or losses from investing and financing activities.

On the basis of the preceding information, calculate Video's cash flows from operating activities by using the indirect method.

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Questions Net Income Accounts receivable Inventory Accounts payable Depreciation Cash Flow from operating Activities Account to YOUR ANSWERS BASED UPON COURSE START DATE original

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