The company assembled the following information with respect to operating cash flow for the year Net income $10,000 Depreciation 2,000 Increase in accounts receivable 1,200 Decrease in inventory 850 Decrease in accounts payable 300 Increase in income taxes payable 40 Increase in deferred tax liabil...

Net income 10000 Plus Depreciation 2000 Less Increase in a ...

The company assembled the following information with respect to operating cash flow for the year: Net income

Question:

The company assembled the following information with respect to operating cash flow for the year:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Increase in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
Decrease in inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850
Decrease in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
Increase in income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Increase in deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,430
Compute 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...