The net profit reported on the income statement for the current year was $50 000.Depreciation on property,plant and equipment and amortisation of goodwill were $30 000 and $1000 respectively.What is the amount of cash flows from operating activities that would appear on the statement of cash flows prepared using the indirect method?

Question

Quizplus · Accepted Answer

The cash flows from operating activities using the indirect method start with net profit and add back non-cash expenses like depreciation and amortization. Thus, $50,000 + $30,000 + $1,000 = $81,000.

The Net Profit Reported on the Income Statement for the Current