The following summary information is for Numbers Company:

Instructions:
1. Compute net cash provided by (used in) operating activities for Numbers Company for the years 2010 through 2013.
2. One definition of cash flow often used in financial analysis is "net income + depreciation." Use this definition to compute cash flow for Numbers Company for the years 2010 through 2013.
3. Under what circumstances is the "net income + depreciation" measure of cash flow a good estimate of actual cash flow from operations? Under what circumstances is it a particularly misleading measure?

Transcribed Image Text:

2013 2012 2011 溯tril静 Net income Depreciation expense Change in accounts receivable. $ 90 40 +15 +10 +30 $90 40 -30 -25 0 $ 90 40 +20 -5 +15 $ 90 40 +15 Change in accounts payable 20