Question

Vaughn Manufacturing reported net income of $1.5 million in 2017. Depreciation for the year was $153.008, accounts decreased $343,900, and accounts payable decreased $282,900 sige eg 15,000 orb,pare thesis eg.

Compute net cash provided by operating activities using the indirect approach (Show amounts that decrease cash flow with either.

Answer 1

..................................................Vaughn Manufacturing.......................................

Cash flows from operating activities 2017

Net Income.........................................................................$1,500,000

Adjustments to reconcile net income to Net Cash provided by Operating Activities

Add Decrease in Accounts Receivable .........$343,900

Less Decrease in Accounts Payable.............$(282,900)

Add Depreciation.............................................$153,000....$214,000

Net cash provided by Operating Activities........................$1,714,000