Assessment ress Question #3 Martinez Company has provided the following informat

Question

Assessment ress Question #3 Martinez Company has provided the following information taken from its current financial statements to assist you in preparing its statement of cash flows. Depreciation Expense Dividends Paid Increase in Accounts Payable Increase in Accounts Receivable Increase in Merchandise Inventory Net Income Purchased Equipment S 11,300 4,200 6,100 6,900 2,800 100,000 3,300 Required: Compute the amount of net cash flow from operating activities for the statement of cash flows, indirect method. Cash Received from Operating SD Help Clear Undo Next >> I don't know

Explanation / Answer

Statement of cash from operating activities under indirect method

Net income - $ 100,000

Add : Inflows

Depreciation Expense - $ 11,300

Increase in Accounts Payable - $ 6,100

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$ 17,400 $ 17,400

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$ 117,400

(Less) : Outflows

Dividend paid - $ - 4,200

Increase in Accounts receivable - $ - 6,900

Increase in Merchandise Inventory - $ - 2,800

Purchased Equipment - $ - 3,300

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$ -17,200 $ - 17,200

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Cash received from Operating Activities $ 100,200

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