Statement of Cash Flow (Indirect Method)
Could someone please explain the adjustment section conceptually and how one can tell if the adjusted amount should be removed (negative #) or added (positive #)? Thanks!
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
| Cash flow from operating activities | ||
| NI | 95000 | |
| Adjustments: | ||
| Gain from HFT | -2500 | |
| Inc in AR | -13000 | |
| Dec in inventory | 12000 | |
| Dec in prepaid expenses | 5000 | |
| Goodwill impairment | 14000 | |
| Depreciation | 30000 | |
| Inc in AP | -10000 | |
| Inc in Accrued Liability | 7000 | |
| IT exp | 20000 | |
| Interest exp | 10000 | |
| Cash generated from OA | 167500 | |
| interest paid | -8000 | |
| income tax paid | -22000 | |
| Net cash from OA | 137500 |
