Operating Activities: Indirect Method Video Lessons

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Problem: Matlock Co. reported net income of $10,000 on its income statement for the year ended December 31, 2012. During 2012, accounts receivable decreases by $4,000, merchandise inventory decreased by $6,000, accounts payable increased by $2,000, and depreciation expense was $8,000. Matlock's net cash flow from operating activities was: A. $10,000 B. $18,000 C. $19,000 D. $30,000

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Problem Details

Matlock Co. reported net income of $10,000 on its income statement for the year ended December 31, 2012. During 2012, accounts receivable decreases by $4,000, merchandise inventory decreased by $6,000, accounts payable increased by $2,000, and depreciation expense was $8,000. Matlock's net cash flow from operating activities was:

A. $10,000

B. $18,000

C. $19,000

D. $30,000

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Our tutors rated the difficulty ofMatlock Co. reported net income of $10,000 on its income sta...as medium difficulty.