Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $165,000
Adjustment made:
Less : Gain on the sale of land -$20,000
Less: Increase in accounts receivable -$35,000
Less: Increase in inventory -$20,000
Less: Decrease in accounts payable -$55,000
Total of Adjustments -$130,000
Net Cash flow from Operating activities $35,000