Exam 13: Statement of Cash Flows

The comparative balance sheets of Friends,Inc.show a net increase in accounts receivable of $650 and a net decrease in inventory of $500.To determine net cash flow from operating activities under the indirect method,net income should be:

Differences between net income and operating cash flow. Identify three factors that may cause net income to differ from the net cash flow from operating activities.

The comparative balance sheets of Apollo Rocket,Inc.show a net increase in inventory of $79,000 and a net decrease in accounts payable of $42,000 during 2018.In computing net cash flow from operating activities under the indirect method,net income for 2018 should be: