Green Timber reported net income of $52,000;depreciation expenses of $13,000;a gain on a land sale of $3,000;and a decrease in Accounts Receivable of $1,500.Under the indirect method,net Cash Flows from operations is:

Question

Quizplus · Accepted Answer

Using the indirect method, we start with net income and make adjustments for non-cash expenses, gains, and changes in working capital. 
Starting with net income of $52,000: 
- add back depreciation expenses of $13,000 
- add back gain on land sale of $3,000 
- subtract decrease in accounts receivable of $1,500 
Net cash flows from operations = $52,000 + $13,000 + $3,000 - $1,500 = $66,500. 
Therefore, the correct choice is B.

Green Timber Reported Net Income of $52,000;depreciation Expenses of $13,000;a