Multiple Choice
Both the direct and indirect methods of reporting cash flows from operating activities include which of the following items?
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A company reported net income of \$250,000. Depreciation and amortization totaled \$120,000. In total, Current assets excluding cash increased by \$25,000 and current liabilities increased by 16,000. The company also had a gain on the sale of equipment of \$4,000. Using the indirect method, what are cash flows from operating activities?
A company had net income of \$240,000. Depreciation expense was \$36,000. During the year, the accounts receivable and Inventory increased \$12,000 and \$25,000, respectively. Accrued expenses and prepaid expenses decreased by \$3,000 and \$14,000, respectively. There was also a gain on the sale of equipment of \$4,000. How much cash was provided by operating activities?