Dorman Company Reported the Following Data:
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Prepare the Cash Flows from Operating Activities Section of l

question 128

Essay

Dorman Company reported the following data:
​ $$\begin{array} { | l | r | } \hline \text { Net income } & \$ 225,000 \\\hline \text { Depreciation expense } & 25,000 \\\hline \text { Gain on disposal of equipment } & 20,500 \\\hline \text { Decrease in accounts receivable } & 14,000 \\\hline \text { Decrease in account payable } & 3,600 \\\hline\end{array}$$ ​
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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Definitions:

Environmental Uncertainty

The degree of unpredictability and complexity in an organization's external environment, affecting decision-making and strategy.

Rate of Change

The speed at which a variable changes over a specific period of time in mathematics, finance, and other fields.

Complexity

Refers to the state of having numerous interrelated parts, making a system or problem difficult to understand, predict, or navigate.

Stakeholders

Individuals or groups who have an interest or concern in the organization and its activities.