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Required Information E12-5 (Algo) Understanding the Computation of Cash Flows from Operating Actlvitles (Indirect Method) [LO 12-2] [The following informatlon applles to the questions displayed

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Required Information E12-5 (Algo) Understanding the Computation of Cash Flows from Operating Actlvitles (Indirect Method) [LO 12-2] [The following informatlon applles to the questions displayed below] Suppose your company sells goods for $360, of which $230 is recelved in cash and $130 is on account. The goods cost your company $137 and were paid for in a previous period. Your company also recorded salaries and wages of $100, of which only $36 has been paid in cash. E12-5 (Algo) Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activitles. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Calculate the amount that should be reported as net cash flow from operating activities. Required Information E12-5 (Algo) Understanding the Computation of Cash Flows from Operating Actlvitles (Indirect Method) [LO 12-2] [The following information applles to the questions displayed below] Suppose your company sells goods for $360, of which $230 is recelved in cash and $130 is on account. The goods cost your company $137 and were pald for in a previous perlod. Your company also recorded salarles and wages of $100, of which only $36 has been paid in cash. E12-5 (Algo) Part 2, 3 and 4 Calculate the amount that should be reported as net cash flow from operatting activities. Calculate the amount that should be reported as net income. . Show how the indirect method would convert net income (requirement 3 ) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.)

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