Question

Telfer, Inc. reported net income of $2.6 million in 2020. Depreciation for the year was $157,700, accounts receivable decreased $375,000, and accounts payable decreased $267,200.

Telfer, Inc. reported net income of $2.6 million in 2020. Depreciation for the year was $157,700, accounts receivable decreased $375,000, and accounts payable decreased $267,200.

Compute net cash provided by operating activities using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Telfer, Inc.
Statement of Cash Flows-Indirect Approach

Entry field with correct answer For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020

Entry field with correct answer Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash



Entry field with correct answer        Accounts Receivable Decrease    Accounts Payable Decrease    Accounts Payable Increase    Net Income    Accounts Receivable Increase    Depreciation Expense


$

Entry field with correct answer

Adjustments to reconcile net income to



Entry field with correct answer Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash



Entry field with correct answer        Depreciation Expense    Accounts Receivable Increase    Accounts Payable Increase    Accounts Payable Decrease    Net Income    Accounts Receivable Decrease

$

Entry field with incorrect answer


Entry field with incorrect answer        Depreciation Expense    Net Income    Accounts Receivable Increase    Accounts Payable Increase    Accounts Receivable Decrease    Accounts Payable Decrease

Entry field with incorrect answer


Entry field with correct answer        Accounts Payable Increase    Accounts Receivable Decrease    Accounts Receivable Increase    Net Income    Depreciation Expense    Accounts Payable Decrease

Entry field with correct answer




Entry field with incorrect answer

Entry field with correct answer        Cash at Beginning of Period    Cash at End of Period    Cash Flows from Financing Activities    Cash Flows from Investing Activities    Cash Flows from Operating Activities    Net Cash Provided by Financing Activities    Net Cash Provided by Investing Activities    Net Cash Provided by Operating Activities    Net Cash Used by Financing Activities    Net Cash Used by Investing Activities    Net Cash Used by Operating Activities    Net Decrease in Cash    Net Increase in Cash


$

Entry field with correct answer



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Answer #1
Telfer Inc
Statement of Cash flows
For the year ended December 31, 2020
Cash flows from operating activities
Net Income   $ 2,600,000
Adjustments to reconcile net income to ;
net cash flow from operating activities
Depreciation expense $   157,700
Decrease in accounts receivable $   375,000
Decrease in accounts payable $ (267,200)
$     265,500
Net cash provided by operating activities $ 2,865,500

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