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CFA Level 1
Financial Reporting and Analysis

Calculating Cash Flow from Operating Activities

Hard Financial Statements Cash Flow Statement

XYZ Corporation has reported the following information in its financial statements for the year ending December 31, 2022:

- Net income: $500,000

- Depreciation expense: $100,000

- Gain on sale of equipment: $50,000

- Increase in accounts receivable: $25,000

- Decrease in accounts payable: $15,000

- Capital expenditures (purchase of new equipment): $200,000

Based on this information, what is the amount of cash flow from operating activities using the indirect method?

Hint

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