22. accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the…

22. accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. income reported on the income statement for the year is $300,000. how much is the cash flow from operating activities on the cash flow statement using the indirect method?

22. accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. income reported on the income statement for the year is $300,000. how much is the cash flow from operating activities on the cash flow statement using the indirect method?

Answer

Explanation:

Step1: Identify change in accounts receivable

Change = Ending - Beginning Change = $245000 - 215000=$30000$

Step2: Adjust net - income for change in accounts receivable

When accounts receivable increases, cash collected is less than net - income. Cash flow from operating activities = Net income−Increase in accounts receivable Cash flow from operating activities = $300000 - 30000$

Answer:

$270000$