Cash Flow from Operations—Indirect Method
The following information was taken from the comparative financial statements of Tulip Corporation:
|
Net income for year |
$ 75,000 |
|
Sales revenue |
450,000 |
|
Cost of goods sold (except depreciation) |
275,000 |
|
Depreciation expense for year |
50,000 |
|
Amortization of intangible assets for year |
20,000 |
|
Interest expense on short term debt for year |
5,200 |
|
Dividends declared and paid during year |
35,000 |
Selected account balances:
|
|
Beginning of Year |
End of Year |
|
Accounts Receivable |
$22,000 |
$15,000 |
|
Inventory |
35,000 |
40,000 |
|
Accounts Payable |
47,500 |
52,000 |
|
Interest Payable |
1,200 |
400 |
Using the indirect method, compute the net amount of cash provided by (used in) operating activities for the year.