Cash Flow from Operations Activities-Indirect Method

question 89

Short Answer

Cash flow from operations activities-indirect method
An analysis of the 2015 financial statements of Portside Provisions reveals the following:
(a)Accounts payable to suppliers of merchandise decreased by $65,000 during 2015.
(b)Dividends of $135,000 were declared in November 2015,to be paid in January 2016.
(c)Dividends of $120,000,declared in November 2014,were paid in January 2015.
(d)Inventory levels increased by $91,000 during 2015.
(e)Depreciation expense for 2015 amounted to $53,000.
(f)Land,which had a cost of $350,000,was sold in 2015 for $400,000 cash,resulting in a gain of $50,000.
(g)Net income for 2015 was $745,000.
Using only the above information,follow the indirect method to compute Portside Provisions' net cash flows from operating activities for 2015.

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Definitions:

Flexible Benefits

A program that allows employees to choose from a range of benefit options.

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal wages or salaries.

Dollar Amount

The total monetary value or cost expressed in units of currency, often used to specify prices, costs, and financial transactions.

Base Compensation

The initial salary or wage provided to an employee not including benefits, bonuses, or any form of variable compensation.