Explanation : PIA received the cash in 2012 when it recorded the unearned revenue
and it was a part of the cash from operations in that year. In 2013, the
revenue is earned so it will increase the taxes which will decrease the
cash from operations.
Explanation : To compute operating cash flow from net income, we start with net
income, add non-cash charges such as depreciation, add the increase in
current operating liabilities and subtract the increase in current operating
Inventories increased by $1,500, accounts receivables decreased by $1,800,and accounts payables increased by $1,000. The net cash flow from operating activities under the indirect method is closest to: