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For the year 2017, a company reports GAAP(accrual basis) net income of $6 million. Depreciation expense was $200,000. From 2016 to 2017 current assets decreased by $400,000, while current liabilities decreased by $200,000. Using indirect method what is the cash flow from operations?
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Answer #1
Net Income 6,000,000
Depreciation expense 200,000
Decrease in current assets 400,000
Decrease in current liabilities -200,000
Net Cash Flows from Operations $6,400,000
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