Purple Ltd reported a profit of $260,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
Required: Determine the cash flows from the operating activities of the company using the indirect method.

Question

Purple Ltd reported a profit of $260,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
  Required: Determine the cash flows from the operating activities of the company using the indirect method.

Quizplus · Accepted Answer

The Answer of Purple Ltd reported a profit of $260,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
  Required: Determine the cash flows from the operating activities of the company using the indirect method.

Purple Ltd Reported a Profit of $260,000 for the Current