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Using the Indirect Method, Calculate the Amount of Net Cash

Question 185

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Using the indirect method, calculate the amount of net cash flows from operating activities from the following data:
20142013 Net Income $250,000 Accounts receivable 22,00025,000 Prepaid expenses 3,0005,000 Accounts payable 14,00015,000 Depreciation expense 51,000 Amortization expense (Patent) 4,000 Dividends declared and paid 11,000\begin{array}{lrr}&2014&2013\\\text { Net Income } & \$ 250,000 & \\\text { Accounts receivable } & 22,000 & 25,000 \\\text { Prepaid expenses } & 3,000 & 5,000 \\\text { Accounts payable } & 14,000 & 15,000 \\\text { Depreciation expense } & 51,000 & \\\text { Amortization expense (Patent) } & 4,000 & \\\text { Dividends declared and paid } & 11,000 &\end{array}

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