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The Following Information Is Given for Nevada Times The Indirect Method Is Used

Question 121

Short Answer

The following information is given for Nevada Times:
 Net income $25,000 Depreciation expense 4,000 Increase in accounts receivable 2,000 Increase in supplies on hand 3,000 Sale of common stock 11,000 Proceeds from sale of equipment 5,000 Loan money to a customer 4,000 Decrease in accounts payable 1,000\begin{array} { l r } \text { Net income } & \$ 25,000 \\\text { Depreciation expense } & 4,000 \\\text { Increase in accounts receivable } & 2,000 \\\text { Increase in supplies on hand } & 3,000 \\\text { Sale of common stock } & 11,000 \\\text { Proceeds from sale of equipment } & 5,000 \\\text { Loan money to a customer } & 4,000 \\\text { Decrease in accounts payable } & 1,000\end{array}
The indirect method is used.
Required:
Answer the following questions with the information provided above.
a)The cash flow from operating activities is ________.
b)The cash flow from investing activities is ________.
c)The cash flow from financing activities is ________.

Correct Answer:

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a)$25,000 + 4,000 - ...

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