Hansen Corporation reported net income of $328,000 for the current year.In addition,accounts payableAccounts Payable increased $24,000 during the year,inventory increased by $15,000,and accounts receivableAccounts Receivable decreased by $20,000.Using the indirect method,what is the net cash provided byflow from operationsoperating activities?
A) $387,000
B) $357,000
C) $328,000
D) $317,000

Question

Quizplus · Accepted Answer

Net cash flow from operating activities = Net income +/- Adjustments to reconcile net income to net cash flow from operating activities
Net cash flow from operating activities = Net income - Increase in current assets + Decrease in current assets + Increase in current liabilities - Decrease in current liabilities + Depreciation expense - Gain on sale of equipment + Loss on sale of equipment
Net cash flow from operating activities = $328,000 + $20,000 - $15,000 + $24,000 = $357,000

Hansen Corporation Reported Net Income of $328,000 for the Current