Saphire Unlimited Company reported net income of $60,000 for the year.During the year, accounts receivable decreased by $6,000, accounts payable increased by $3,000, depreciation expense of $5,000 was recorded, and there was a gain $1,000 on the sale of long-term investments.Using the indirect method, net cash flow from operating activities for the year is:
A) $73,000.
B) $60,000.
C) $40,500.
D) $81,500.

Question

Quizplus · Accepted Answer

Net cash flow from operating activities for the year = Net income + Decrease in accounts receivable + Increase accounts payable + Depreciation expense - Net cash flow from operating activities
= $60,000 + $6,000 + $3,000 + $5,000 - $1,000
= $73,000

Saphire Unlimited Company Reported Net Income of $60,000 for the Year.During