Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payable increased $5,400. Under the indirect method, the cash flow from operations is $32,400.

Question

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Under the indirect method, an increase in accounts receivable is subtracted and an increase in accounts payable is added to net income. Therefore, $29,500 - $2,500 + $5,400 = $32,400.

Net Income for the Year Was $29,500