Computing Cash Flows from Operating activities: Indirect Method

Posted by:Prof. Lexx Posted on:May 21,2016

Computing Cash Flows from Operating activities: Indirect Method

E3A. During 2014, Ortega Corporation had net income of $82,000. included on its income statement were depreciation expense of $4,600 and amortization expense of $600. During the year, Accounts Receivable increased by $6,800, Inventories decreased by $3,800, Prepaid Expenses decreased by $400, Accounts Payable increased by $10,000,and Accrued Liabilities decreased by $900. Determine net cash flow from operating activities using the indirect method.

Preparing a Schedule of Cash Flow from Operating Activities: Indirect Method  

E4A. For the year ended June 30, 2014, net income for Flake Corporation was $14,800. Depreciation Expenses was $4,000. During the year, Accounts Receivable increased by $8,800, Inventories increased by $14,000, Prepaid Rent decreased by $2,800, Accounts Payable increased by $28,000, Salaries Payable increased by $2,000, and Income Taxes Payable Decreased by $1,200. Use the indirect method to prepare a schedule of cash flows from operating activities.

Computing Cash Flows from Investing Activities: Plant Assets    

E6A. The T accounts for plant assets and accumulated depreciation for Street Company at the end of 2014 follow.  

In addition,  Street’s income statements shows a gain on sale of plant assets of $8,800. Compute the amount to be shown from investing activities, and show how they appear on the statement of cash flows.


Prof. Lexx

Overview I have a Bachelor of Arts, majoring in English and minoring in History. I have worked in various fields ranging from academic research to freelance translating to editing to customer support and data entry. These include editing my old university's newspaper as well as co-leading their creative writing team; serving as a junior member in the history department's research network; publishing music and film reviews for several different magazines and webzines; and translating papers and books for numerous researchers in various languages, including Russian, Spanish, and Romanian. I am also a skilled typist, with a rate of at least 70 words per minute, and have myself digitized dozens of books and essays for both private and commercial use. I have a very strong work ethic, and make sure to prioritize the task I am given so that it is completed as quickly as possible. I am organized and disciplined, ensuring a job done professionally and efficiently.

    I have a background of 8 years in writing profession and currently pursuing also as an editor and proofreader. I have a knack for writing and thus, it was obvious to enhance my skills and serve others. Currently joined ‘Member of Association of Professional Writers and Editors’ a

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