The net income reported on the income statement for the current year was $295,779. Depreciation recorded on fixed assets and amortization of patents for the year were $36,030 and $11,489, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: EndBeginningCash$64,081$48,791Accounts Receivable123,219102,308Inventories100,31086,859Prepaid Expenses3,2486,877Accounts Payable (merchandise creditors)45,29462,023What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Cash flows from operating activities: It is a section of Statement of cash flow that explains the sources and uses of cash from business activities.Cash flows from operating activities: Net income $295,779 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation $36,030 Amortization of patents $11,489 Changes in current operating assets and liabilities: Increase in accounts receivable (123,219-102,308) $(20,911) Increase in inventory (100,310-86,859) $(13,451) Decrease in prepaid expenses (6,877-3248) $3,629 Decrease in accounts payable (62,023-45,294) $(16,729) Net cash flow from operating activities $295,836

Answered: The net income reported on the income…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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The net income reported on the income statement for the current year was $295,779. Depreciation recorded on fixed assets and amortization of patents for the year were $36,030 and $11,489, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:

	End	Beginning
Cash	$64,081	$48,791
Accounts Receivable	123,219	102,308
Inventories	100,310	86,859
Prepaid Expenses	3,248	6,877
Accounts Payable (merchandise creditors)	45,294	62,023

What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

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