Loading...
CFA Level 1
Financial Reporting and Analysis

Cash Flow from Operating Activities Calculation

Medium Financial Statements Cash Flow Statement

XYZ Ltd. prepares its cash flow statement u\sing the indirect method. For the year ending December 31, 2023, the company reported a net income of $500,000. During the year, it had depreciation expense of $100,000 and an increase in accounts receivable of $50,000. Additionally, there was a gain of $20,000 from the sale of equipment. Based on this information, how much cash flow from operating activities should XYZ Ltd. report in its cash flow statement?

Hint

Submitted8.3K
Correct7.9K
% Correct95%