Cash Flow from Operations Activities-Indirect Method

question 147

Short Answer

Cash flow from operations activities-indirect method
An analysis of the 2010 financial statements of Portside Provisions reveals the following:
(a) Accounts payable to suppliers of merchandise decreased by $65,000 during 2010.
(b) Dividends of $135,000 were declared in November 2010, to be paid in January 2011.
(c) Dividends of $120,000, declared in November 2009, were paid in January 2010.
(d) Inventory levels increased by $91,000 during 2010.
(e) Depreciation expense for 2010 amounted to $53,000.
(f) Land, which had a cost of $350,000, was sold in 2010 for $400,000 cash, resulting in a gain of $50,000.
(g) Net income for 2010 was $745,000.
Using only the above information, follow the indirect method to compute Portside Provisions' net cash flows from operating activities for 2010.

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Definitions:

On-the-Job Training

The training received by employees during the course of their current employment to enhance skills and performance.

Selling Skills

Abilities necessary to effectively persuade customers to purchase goods or services, including communication, negotiation, and closing techniques.

Selling

The process of persuading a customer to purchase a product or service.

Flexibility

The quality of being able to change or adapt to new circumstances easily without negative consequences.