Cash Flow from Operations Activities-Indirect Method

question 111

Essay

Cash flow from operations activities-indirect method
An analysis of the 2018 financial statements of Portside Provisions reveals the following:
(a)Accounts payable to suppliers of merchandise decreased by $65,000 during 2018.
(b)Dividends of $135,000 were declared in November 2018,to be paid in January 2019.
(c)Dividends of $120,000,declared in November 2017,were paid in January 2018.
(d)Inventory levels increased by $91,000 during 2018.
(e)Depreciation expense for 2018 amounted to $53,000.
(f)Land,which had a cost of $350,000,was sold in 2018 for $400,000 cash,resulting in a gain of $50,000.
(g)Net income for 2018 was $745,000.
Using only the above information,follow the indirect method to compute Portside Provisions' net cash flows from operating activities for 2018.

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Definitions:

Precambrian

Relating to or denoting the earliest eon in the earth's history, which ended about 541 million years ago, before the Cambrian period.

Cenozoic

The most recent of the three major subdivisions of animal and plant life on Earth, covering the time from 66 million years ago to the present.

Mesozoic

The era of geologic time from about 252 to 66 million years ago, known as the "Age of Reptiles," including the Triassic, Jurassic, and Cretaceous periods.

Paleozoic

An era in the geological timescale, occurring between 541 million and 252 million years ago, characterized by the early development of abundant marine life and the first emergence of land plants and animals.