Prepare the cash flows from operating activities using the indirect method
Cash Flow from operating activities
Indirect Method
Net income $ 220,000
Add: Depreciation $ 25,600
Add: amortization of patents $ 18,500
Less: Increase in Accounts Receivables (32300-31100) $ (1,200)
Add: Decrease in inventories (56700-54800) $ 1,900
Less: Decrease in Tax Payable (39600-37900) $ ( 1,700)
Less: Increase in Prepaid (4000-3500) $ (500)
Add: Increase in Accounts payable (46000-42900) $ 3,100
Less: Decrease in wages Payable (23600-21400) $ (2,200)
Net Cash flow from operating activities $ 263,500