Alpha Computers Reports Net Income of $44 Million

question 100

Essay

Alpha Computers reports net income of $44 million.Included in that number are depreciation expense of $7 million and a loss on the sale of land of $2 million.Records reveal decreases in Accounts Receivable,Inventory,and Accounts Payable of $4 million,$3 million,and $2 million,respectively.Calculate Alpha Computers' net cash flows from operating activities using the indirect method.

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Definitions:

Overdue

A status indicating that a payment, task, or obligation has not been fulfilled by the designated or expected deadline.

HDC Status

Holder in Due Course Status; a term in negotiable instruments law referring to a person who has acquired a negotiable instrument in good faith for value, and thus has certain protections.

Negotiable Instrument

A written promise or order to pay a specific amount of money, easily transferable from one party to another.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or currency bill, not necessarily its current market value.