An analyst compiled the following information for Uver Inc. for the year ended December 31, 2016: â–ª Net income was $1,700,000.â–ª Depreciation expense was $400,000. â–ª Interest paid was $200,000. â–ª Income taxes paid were $100,000. â–ª Common stock was sold for $200,000. â–ª Preferred stock (8% annual dividend) was sold at par value of $250,000. â–ª Common stock dividends of $50,000 were paid. â–ª Preferred stock dividends of $20,000 were paid. â–ª Equipment with a book value of $100,000 was sold for $200,000. Using the indirect method, what was Uver Inc.'s net cash flow from operating activities for the year ended December 31, 2016?

Respuesta :

Answer:

$2,000,000

Explanation:

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $1,700,000

Adjustment made:

Add : Depreciation expense $400,000

Less: Gain on sale of equipment -$100,000 ($200,000 - $100,000)

Total of Adjustments $300,000

Net Cash flow from Operating activities         $2,000,000