Question
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.
Questions Net Income Accounts receivable Inventory Accounts payable Depreciation Cash Flow from operating Activities Account to YOUR ANSWERS BASED UPON COURSE START DATE originalStep by Step Solution
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