# Tany's Organization uses the indirect method to calculate its cash flow analysis. What is the net...

Tany's Organization uses the indirect method to calculate its cash flow analysis. What is the net cash provided or used by the organization operating activities? Please show working to receive full credit! Net income \$ 85,300 Depreciation expense 12,000 Gain on sale of land 7,500 Increase in merchandise inventory 2,050 Increase in accounts payable 6,150 TT T Arial 3 (12pt) T-E- E
points Wilson will receive \$5,000 in two years and he will invest it at 6.5% per year. What wil the amount be worth eight years from now? \$6,850.43 \$7,302 27 \$7.295.71 \$8,274.98

Solution 1:

Net cash provided (Used) by operating activities = Net income +Depreciation - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable

= \$85,300 +\$12,000 - \$7,500 - \$2,050 + \$6,150 = \$93,900

Solution 2:

Future value = \$5,000 * (1+0.065)^6 = \$7,295.71

Hence 3rd option is correct.

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