medium · Financial Accounting statement-of-cash-flows

In a reconciliation of Net Income to Cash Flow from Operations (CFO) using the indirect method, a company reports Net Income of $40,000, Depreciation of $15,000, an increase in Accounts Receivable of $8,000, and an increase in Accounts Payable of $5,000.

What is the resulting CFO?

  1. $52,000
  2. $68,000
  3. $37,000
  4. $42,000

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