90.2K

Verified Solution

Link Copied!

Required Information E12-4 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12- 2] {The following information applies to the questions displayed below.) Suppose your company sells services of $290 in exchange for $190 cash and $100 on account. Depreciation of $120 relating to equipment also is recorded. E12-4 Part 2, 3 and 4 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Calculate the amount that should be reported as net cash flow from operating activities. Required Required 3 > Net Cash Inflow Net Cash Outflow Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Calculate the amount that should be reported as net income. Net Income Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign. Net Income Depreciation Increase in Accounts Receivable Net Cash Flow from Operating Activities $

Answer & Explanation Solved by verified expert

See Answer