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The Following Information Is Given for Nevada Times The Indirect Method Is Used

Question 122

Essay

The following information is given for Nevada Times:
 Net income $20,000 Depreciation expense 4,000 Decrease in accounts receivable 2,000 Increase in supplies on hand 3,000 Sale of common stock 10,000 Purchase of equipment 5,000 Loan money to a customer 4,000 Becrease in accounts payable 1,000\begin{array} { l l } \text { Net income } & \$ 20,000 \\\text { Depreciation expense } & 4,000 \\\text { Decrease in accounts receivable } & 2,000 \\\text { Increase in supplies on hand } & 3,000 \\\text { Sale of common stock } & 10,000 \\\text { Purchase of equipment } & 5,000 \\\text { Loan money to a customer } & 4,000 \\\text { Becrease in accounts payable } & 1,000\end{array} The indirect method is used.
Required:
Answer the following questions with the information provided above.
a)The cash flow from operating activities is ________.
b)The cash flow from investing activities is ________.
c)The cash flow from financing activities is ________.

Correct Answer:

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a)$20,000 + $4,000 +...

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