Depreciation and Cash Flow
O'hare Company's only asset as of January 1, 2016, was a limousine. During 2016, only the following three transactions occurred:
Services of $100,900 were provided on account.
All accounts receivable were collected.
Depreciation on the limousine was $17,200.
Required:
1. Develop an income statement for O'hare for 2016.
O'hare Company
Income Statement
For The Year Ended December 31, 2016 $ $
2. Determine the amount of the net cash inflow for O'hare for 2016. $
3. The amount of net income does not equal the amount of the net cash inflow because of . This is a charge which affect cash. This needs to be net income to determine the amount of net cash inflow.
4. If O'hare developed a cash flow statement for 2016 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities? $