Using the Indirect Method,calculate the Amount of Net Cash Flows

question 42

Essay

Using the indirect method,calculate the amount of net cash flows from operating activities from the following data.Show your work.
$\begin{array}{lrlr}\text { Net Income } & \$ 63,000 & \text { Beginning Accounts Payable } & \$ 3,000 \\\text { Beginning Accounts } & & \text { Ending Accounts Payable } & 2,800 \\\text { Receivable } & 5,000 & \text { Depreciation Expense } & 10,200 \\\text { Ending Accounts Receivable } & 4,400 & \text { Amortization of Intangible } & \\\text { Beginning Prepaid Expenses } & 1,000 & \text { Assets } \\\text { Ending Prepaid Expenses } & 1,400 & \text { Dividends Declared and Paid } & 2,200\end{array}$

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Definitions:

Market Price

The amount of money a buyer pays and a seller receives for a product or service in a competitive marketplace.

Producer Surplus

The difference between the amount a producer is paid for a good compared to the minimum amount they would be willing to accept, representing profit.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive due to higher market price.

Binding Price Ceiling

A government-imposed limit on the price of a product or service that is set below the market equilibrium, leading to shortages and a decrease in supply.