Which of the following items would be subtracted from net income when using the indirect method of calculating cash flows provided by operating activities? (2024)

Q.

In indirect method of preppearation of cash flow statement, the _______ figure from the income statement is used to calculate the amount of net cash flow from operating activities.

Q.

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

Net Income7,000Depreciation Expense 1,000Increase in Accounts Receivable4,400Increase in Prepaid Rent7,000Decrease in Prepaid Insurance1,300Increase in Accounts Payable14,000Increase in Wages Payable 1,000Decrease in Income Tax Payable700Gain on Sale of Equipment1,800

Q.

The method for presenting net cash provided by operating activities that starts with net income and adjusts it for items that affected reported net income but that did not affect cash is called the ____________.

Q.

This method starts with net income and converts it to operating cash flow by adjusting for items that were used to calculate net income but did not affect cash. This method is …..