Asked by
Pedro Hernandez
on Nov 13, 2024
Verified
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000, and depreciation expense of $8,000 was recorded. Net cash provided by operating activities under the indirect method for the year is
A) $53,000
B) $47,000
C) $33,000
D) $37,000
Accounts Receivable
Financial obligations of customers to a company for products or services already delivered but not settled.
Depreciation Expense
Depreciation expense is the allocated amount of the cost of a tangible asset over its useful life, recognized in accounting to account for the decrease in the asset's value over time.
Net Income
The company's remaining earnings once all costs, taxes, and expenses are deducted from its total revenues.
- Gain proficiency in utilizing the indirect method to ascertain net cash flow from operating activities.
- Compute the net cash inflow or outflow from operating activities by applying the indirect method.
- Identify the role of non-operating factors, like gains and losses, in the calculation of net cash flow.
Verified Answer
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Learning Objectives
- Gain proficiency in utilizing the indirect method to ascertain net cash flow from operating activities.
- Compute the net cash inflow or outflow from operating activities by applying the indirect method.
- Identify the role of non-operating factors, like gains and losses, in the calculation of net cash flow.