Using the Indirect Method, Calculate the Amount of Cash Flows

question 78

Essay

Using the indirect method, calculate the amount of cash flows from operating activities from the following data:
$$\begin{array} { | l | r | } \hline \text { Net Earnings } & \$ 275,000 \\\hline \text { Beginning trade receivables } & 43,000 \\\hline \text { Ending trade receivables } & 37,000 \\\hline \text { Beginning prepaid expenses } & 10,000 \\\hline \text { Ending prepaid expenses } & 3,000 \\\hline \text { Beginning trade payables } & 19,000 \\\hline \text { Ending trade payables } & 14,000 \\\hline \text { Depreciation expense } & 48,000 \\\hline \text { Dividends declared and paid } & 12,000 \\\hline\end{array}$$

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Definitions:

Satisfaction with Life

An individual's cognitive judgment of one's life as a whole, often assessed through surveys and questionnaires.

Income Classes

Categories of individuals or households separated by levels of income used for analysis and policy-making in economics and sociology.

Happiness Increases

Refers to the rise in a person's subjective well-being or satisfaction levels, often resulting from favorable life circumstances or experiences.

Income Level

The amount of monetary or non-monetary earnings produced by an individual or entity within a specified period.