Thank you 36 A corporation reported the tollowing information or the pad year: N

Question

Thank you 36 A corporation reported the tollowing information or the pad year: Net Income Depreciation Gain on sale of truck Proceeds from sale of truck Decrease in accounts receivable Purchase of investments $ 200,000 $ 30,000 $ 5,000 8,000 $ 10,000 30,000 a Assuming these are the only facts, what amount will the corporation report as Net Cash Provided (Used) by Operating Activities on the statement of cash flows? Show format. Using the information in Question #4, what amount will the corporation report as Cash Provided (Used) by Investing Activities on the statement of cash flows? Show format.

Explanation / Answer

Given the information in the question, the excerpts from statement of cash flow is shown below, kindly let me know in case of further explanations:

a) Cash flow from operations using indirect method is calculated by the following- Net income + Noncash Expenses + Net Operating Gain/Losses+ Changes in Working Capital For the given facts, now we compute the same for this corporation $ Net Income          200,000 Add: Non-Cash Expenses - Depreciation            30,000 Less: Non-Operating Gains: Gain on sale of trucks              5,000 Add: Decrease in Current Assets: Decrease in Accounts receivable            10,000 Net Cash provided(used) by Operating Activities          235,000 b) Cash flow from investing activities using indirect method is calculated by the following- $ Proceeds from sale of truck              8,000 Less: Purchase of Investments            30,000 Net Cash provided(used) by Investing Activities          (22,000)

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