Determining Net Income from Net Cash Flow from Operating Activities Sanhueza, In

Question

Determining Net Income from Net Cash Flow from Operating Activities Sanhueza, Inc., reported a net cash flow from operating activities of $225,200 on its statement of cash flows for the year ended December 31, 2014. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $4,300 Decrease in inventories 10,700 Depreciation 16,400 Gain on sale of investments 7,400 Increase in accounts payable 3,000 Increase in prepaid expenses 1,800 Increase in accounts receivable 8,000 Determine the net income reported by Sanhueza, Inc., for the year ended December 31, 2014. $

Explanation / Answer

Answer:

particulars amount cash flow from operating activities $ 2,25,200.00 decrease in income taxes payable $       4,300.00 gain on sales of investments $       7,400.00 increase in prepaid expenses $       1,800.00 increase in accounts receivables $       8,000.00 increase in accounts payable $       3,000.00 depreciation $     16,400.00 decrease in inventories $     10,700.00 net income $ 2,16,600.00

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