Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Royal Corporation uses the indirect method of computing net cash flow from operating activities and reported the following for Year 2: Accounts receivable decreased by $10,300, merchandise inventory increased by $15,300, accounts payable decreased by $4,000, and income taxes payable increased by $18,800. If Royal Corporation reported net income for Year 2 of $157,800 (including $34,800 of depreciation expense), net cash flow from operating activities for Year 2 is:

Sagot :

Answer:

$202,400

Explanation:

The computation of the net cash flow from operating activities for year 2 is shown below:

= Net income + depreciation expense + decrease in account receivable - increase in merchandise inventory - decrease in account payable + increase in income tax payable

= $157,800 + $34,800 + $10,300 - $15,300 - $4,000 + $18,800

= $202,400

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.