CALC LATOR FULL SCREEN PRINTER VERSION ·BACK Question 1 The net income for Cullu

Question

CALC LATOR FULL SCREEN PRINTER VERSION ·BACK Question 1 The net income for Cullumber Company for 2019 was $250,000. For 2019, depreciation on plant assets was $65,000, and the compeny incurred a $10,000 Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the flow with elther a -sign e.g.-15,000 or in parenthesls e.g. (15,000).) company's accounts. (Show amounts that decrease cas Cullumber Company Statement of Cash Flows-Indirect Method yet Income 50000 Adjustments to reconcile net income to Deprecon Expese 65000 10000 Click if you would like to Show Work for this question

Explanation / Answer

Calculating Cash flow from Operations
Steps for calculating the cash flow from operations using the indirect method:

Net Income = $ 2,50,000

Depreciation on plant assets = $65,000

Loss on disposal of plant assets = $10,000

Net Cash flow from Operations = Net Income + Depreciation on plant assets + Loss on disposal of plant assets

= 2,50,000+65,000+10,000

Net Cash flow from Operations = $3,25,000

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