Compute the Cash Flows from Operations Using the Indirect Method

question 29

Multiple Choice

Compute the cash flows from operations using the indirect method if Star Corporation had $250,000 in net income, $30,000 in depreciation expense, a decrease of $20,000 in accounts receivable and an increase in bonds payable of $50,000.

• A) $370,000
• B) $300,000
• C) $250,000
• D) $310,000

---

Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.

U.S. Adults

Individuals who are legally considered adults in the United States, typically age 18 and over, encompassing diverse demographics and backgrounds.

Married

The state of being united to a person as a spouse through legal, cultural, or religious ceremonies.

Marital Stability

The condition of a marriage characterized by enduring relationships, lack of conflict, and the ability to maintain a healthy and lasting partnership.