Sterling Sails reported net income of $30,000; depreciation expenses of $19,000; an increase in Accounts Payable of $2,000; and an increase in current notes receivable of $3,000. Net Cash Flows from operating activities under the indirect method is:

Question

Quizplus · Accepted Answer

Net Cash Flows from operating activities is calculated as: Net Income + Depreciation + Increase in Accounts Payable - Increase in Notes Receivable = $30,000 + $19,000 + $2,000 - $3,000 = $48,000.

Sterling Sails Reported Net Income of $30,000; Depreciation Expenses of $19,000;