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Problem: Northington, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from operating activities using the indirect method:

Net income $182,000
Gain on the sale of equipment 12,300
Proceeds from the sale of equipment 92,300
Depreciation expense-equipment 50,000
Payment of bonds at maturity 100,000
Purchase of land 200,000
Issuance of common stock 300,000
Increase in merchandise inventory 35,400
Decrease in accounts receivable 28,800
Increase in accounts payable 23,700
Payment of cash dividends 32,000
  • $261,400.
  • $186,800.
  • $236,800.
  • $332,200.
  • $189,400.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92641183

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