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Flynn Company reported a net income of $21,000 for the year ended December 31, 20XX. During the year, accounts receivable decreased $5,000, merchandise inventory increased $11,000, accounts payable increased by $10,000, and depreciation expense of $7,000 was recorded. During 20XX, using the indirect method, cash flows from operating activities are

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hyderali230

Answer:

Net Cash inflow of $32,000 from operating activites.

Explanation:

             Flynn Company

         Cash flow statement

For the year ended December 31, 20XX

Cash Flow from operating activities

Net Income                 $21,000

Dpereciation               $7,000

Inventory                     ($11,000)

Account Receivable    $5,000

Account Payable         $10,000

Net Cash flow              $32,000

So, Net Cash inflow of $32,000 from operating activites.