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Martin,Inc

question 66

Essay

Martin,Inc.'s,income statement is shown below.Based on this income statement and the other information provided,calculate the net cash provided by operations using the indirect method.
$Martin,Inc.'s,income statement is shown below.Based on this income statement and the other information provided,calculate the net cash provided by operations using the indirect method. Additional information: \begin{array}{|l|r|} \hline \text { Increase in accounts receivable } & \$ 4,000 \\ \hline \text { Increase in accounts payable } & 16,000 \\ \hline \text { Increase in income taxes payable } & 300 \\ \hline \text { Decrease in prepaid expenses } & 10,000 \\ \hline \text { Decrease in merchandise inventory } & 14,000 \\ \hline \text { Decrease in long-term notes payable } & 20,000\\ \hline \end{array}$
Additional information:
$\begin{array}{|l|r|}\hline \text { Increase in accounts receivable } & \$ 4,000 \\\hline \text { Increase in accounts payable } & 16,000 \\\hline \text { Increase in income taxes payable } & 300 \\\hline \text { Decrease in prepaid expenses } & 10,000 \\\hline \text { Decrease in merchandise inventory } & 14,000 \\\hline \text { Decrease in long-term notes payable } & 20,000\\\hline\end{array}$

Definitions:

Depletion

The allocation of the cost of wearing down or using up natural resources over the period they are extracted or consumed.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Commercial Substance

A characteristic of a transaction indicating that it will result in a significant change in the economic circumstances of a business.

Future Cash Flows

The amount of money that is expected to be received or paid out by a business in the future.