Reference no: EM132529454

Question 1: How do compute the net cash amount for operating activities using the indirect method

Net income for the year $ 90,000

Depreciation expense for the year 60,000

Amortization of intangible assets 10,000

Following are selected current account balances:

                                 Beginning of the 2020                   Beginning of year 2021

Accounts Receivable              $43,000                              $30,000

Inventory                           42,000                                  50,000

Accounts Payable                    59,400                            56,000

Interest Payable                         1,000                             0