Operating Activities: Indirect Method Video Lessons

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Concept

Problem: Owl Fitness’ financial statements show the following: net income of $100,000; depreciation expense $20,000; amortization expense of $15,000; loss on sale of equipment $10,000; gain on bond retirement $2,000; accounts receivable increased $5,000; Merchandise inventory increased $8,000; prepaid expenses decreased $6,000; installment notes increased by $7,000; wages payable increased by $2,000 and Accounts payable decreased by $4,000. Calculate net cash flow from operating activities.

Problem Details

Owl Fitness’ financial statements show the following: net income of $100,000; depreciation expense $20,000; amortization expense of $15,000; loss on sale of equipment $10,000; gain on bond retirement $2,000; accounts receivable increased $5,000; Merchandise inventory increased $8,000; prepaid expenses decreased $6,000; installment notes increased by $7,000; wages payable increased by $2,000 and Accounts payable decreased by $4,000. Calculate net cash flow from operating activities.

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Our tutors rated the difficulty ofOwl Fitness’ financial statements show the following: net in...as medium difficulty.