Cash Flow from Operations—Indirect Method
The following information was taken from the books of Tap water Company. Compute the amount of net cash provided by (used in) operating activities during 2008 using the indirect method.
|
|
Dec 31, 2008 |
Dec 31, 2007 |
|
Accounts receivable |
$18,900 |
$16,750 |
|
Accounts payable |
11,500 |
14,000 |
|
Accumulated depreciation (no plant assets retired during year) |
29,000 |
22,000 |
|
Inventories |
24,500 |
20,000 |
|
Other current liabilities |
5,000 |
3,000 |
|
Prepaid insurance |
1,200 |
2,000 |
|
Net income |
35,500 |
— |