Accounts receivable from sales transactions were $46,439 at the beginning of the year and $61,231 at the end of the year. Net income reported on the income statement for the year was $122,433. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is Select the correct answer. Solution Net income for the year =$122433 Less increase in account receivables=$14792 CASH FLOWS DURING THE YEAR FROM OPERATING ACTIVITIES=$(122433-14792) =$107641 .

1. Accounts receivable from sales transactions were $46,439 at the beginning of the year and
$61,231 at the end of the year. Net income reported on the income statement for the year was
$122,433. Exclusive of the effect of other adjustments, the cash flows from operating activities
to be reported on the statement of cash flows prepared by the indirect method is
Select the correct answer.
$137,225
$14,792
$107,641
$122,433
Solution
Net income for the year =$122433
Less increase in account receivables=$14792
CASH FLOWS DURING THE YEAR FROM OPERATING ACTIVITIES=$(122433-14792)
=$107641