Moore Company's net income last year was $56,000 and cash dividends declared and paid to the company stockholders was $31,000. Changes in selected balance sheet accounts for the year appear below: Based solely on this information, the net cash flows from operating activities under the indirect method on the statement of cash flows would be

Question

Moore Company's net income last year was $56,000 and cash dividends declared and paid to the company stockholders was $31,000. Changes in selected balance sheet accounts for the year appear below:  Based solely on this information, the net cash flows from operating activities under the indirect method on the statement of cash flows would be

Quizplus · Accepted Answer

We can calculate net cash flows from operating activities using the indirect method as follows:

Net Income: $56,000
Adjustments for:
- Depreciation Expense: +$15,000
- Decrease in Accounts Receivable: -$8,000
- Increase in Accounts Payable: +$20,000
- Increase in Accrued Expenses Payable: +$5000
= Net Cash Flows from Operating Activities: $83,000

Therefore, the correct answer is D, $83,000.

Moore Company's Net Income Last Year Was $56,000 and Cash