Operating Activities: Indirect Method Video Lessons

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Problem: Allen Company's 2009 income statement reported total revenues, $850,000 and total expenses (including $40,000 depreciation) of $720,000. The 2009 balance sheet reported the following: accounts receivable—beginning balance, $50,000 and ending balance, $40,000; accounts payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only on this information, the 2009 net cash inflow from operating activities was  A. $126,000 B. $166,000 C. $174,000 D. $186,000

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Problem Details

Allen Company's 2009 income statement reported total revenues, $850,000 and total expenses (including $40,000 depreciation) of $720,000. The 2009 balance sheet reported the following: accounts receivable—beginning balance, $50,000 and ending balance, $40,000; accounts payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only on this information, the 2009 net cash inflow from operating activities was 

A. $126,000

B. $166,000

C. $174,000

D. $186,000

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