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:

Anterior Fontanel

A soft, membranous gap between the bones of an infant's skull, which allows for brain growth and ossifies as the child matures.

Occipital Bone

A skull bone located at the lower back of the skull, forming the main part of the back of the head and containing the foramen magnum.

Costochondral Joint

The Costochondral Joint refers to the area where a rib and the cartilage attach, allowing for slight movement and contributing to the chest's elasticity.

Stylomandibular Ligament

A band of fibrous tissue that extends from the styloid process of the temporal bone to the mandible, assisting in the support of the jaw.