Question: 1. Place the following items in the correct order as they would appear in the statement of cash flows.
1. Financing activities.
2. Net increase (decrease) in cash.
3. Operating activities.
4. Beginning cash balance.
5. Ending cash balance.
6. Investing activities.
2. Laser World reports net income of $550,000. Depreciation expense is $40,000, accounts receivable increases $10,000, and accounts payable decreases $20,000. Calculate net cash flows from operating activities using the indirect method.