Financial Reporting and Analysis Q153
153The following information is available for Nishant Mills Ltd:
| Net income | $45,000 |
| Depreciation | $18,000 |
| Amortization | $10,000 |
Inventories increased by $1,500, accounts receivables decreased by $1,800,and accounts payables increased by $1,000. The net cash flow from operating activities under the indirect method is closest to:
- Option : C
- Explanation : Operating cash flow = Net income + Depreciation and amortization - Increase in working capital Operating cash flow = 45,000 + 18,000 + 10,000 + ( -1500 + 1800 + 1000) = $74,300
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