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Taylor Korynta
on Dec 17, 2024

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Orion Corporation reported net income of $31,000, depreciation expenses of $18,000, an increase in Accounts Payable of $3,000 and a decrease in Accounts Receivable of $2,500. Under the indirect method, net cash flow from operating activities is:

A) $38,300
B) $54,500
C) $23,700
D) $35,300

Depreciation Expenses

The allocated cost of an asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Accounts Receivable

Funds that clients or customers owe to a company for products or services delivered on credit.

Accounts Payable

An accounting recording of amounts a company owes to suppliers for goods or services purchased on credit.

  • Analyse the repercussion of different financial activities on cash flow from operations with the indirect method.
  • Ascertain the net cash inflow from business operations through evaluation of working capital fluctuations.
  • Understand how to adjust net income to arrive at net cash provided by operating activities.
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Zachary BurgbacherDec 18, 2024
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