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Use the following information to calculate net cash flow from operating activities using indirect method?

Net Income $7,0 Depreciation Expense1,0 Increase in Accounts Receivable4,400 Increase in Prepaid Rent7,0 Decrease in Prepaid Insurance1,300 Increase in Accounts Payable14,0 Increase in Wages Payable1,0 Decrease in Income Tax Payable700 Gain on Sale of Equipment1,800

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Question added by Ahmed Lutfi Abu Rasheed , Chife Accountant , Cigalah Trading Est.,
Date Posted: 2013/11/16
Azeem Malik
by Azeem Malik , Senior Accounts Executive , Citruss TV

Net Income          -                     $7

 

Add:

Depreciation         -                   $1

Decrease in Prepaid Insurance - $1.3

Increase in Accounts Payable -  $

Increase in Wages Payable - $1

 

Less:

Increase in Accounts Receivable  - $4.4

Increase in Prepaid Rent - $7

Decrease in Income Tax Payable - $0.7

Gain on Sale  -                    $1.8

 

Cash Flow from Operating Activities -      $.4

 

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