The net income reported on the income statement for the current year was $60,000.Depreciation recorded on fixed assets was $31,000.What is the cash flow from operations that would appear on a cash flow statement using the indirect method?
A)$29,000
B)$60,000
C)$31,000
D)$91,000

Question

Quizplus · Accepted Answer

The cash flow from operations using the indirect method starts with the net income and then adds back non-cash expenses such as depreciation. Therefore, $60,000 (net income) + $31,000 (depreciation) = $91,000.

The Net Income Reported on the Income Statement for the Current