question 37 (mandatory) (5 points)\nnet income for the year was $45,500. accounts receivable increased…

question 37 (mandatory) (5 points)\nnet income for the year was $45,500. accounts receivable increased $5,500, and account payable increased by $11,200. under the indirect method, the cash flow from operations is\n$51,200\n$45,500\n$62,200\n$28,800

question 37 (mandatory) (5 points)\nnet income for the year was $45,500. accounts receivable increased $5,500, and account payable increased by $11,200. under the indirect method, the cash flow from operations is\n$51,200\n$45,500\n$62,200\n$28,800

Answer

Explanation:

Step1: Adjust for accounts receivable

An increase in accounts receivable means less cash received, so we subtract it from net - income. $45500 - 5500$

Step2: Adjust for accounts payable

An increase in accounts payable means less cash was paid out, so we add it. $(45500 - 5500)+11200$ $=40000 + 11200$ $=51200$

Answer:

$51200$