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Brianna Harper
on Nov 15, 2024

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The net income reported on the income statement for the current year was $70,000. Depreciation Expense recorded on fixed assets was $18,000. What is the net cash flow from operations that would appear on a cash flow statement using the indirect method?

A) $70,000
B) $88,000
C) $18,000
D) $52,000

Net Cash Flow

The amount of cash generated or lost over a specific period, considering cash inflows and outflows.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value due to wear and tear.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net profit or loss.

  • Investigate the impact diverse transactions have on cash flow from operations via the indirect method.
  • Acquire knowledge on the adjustment process of net income to yield net cash from operating activities.
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Alyssa DarbonneNov 18, 2024
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