Operating activities under the indirect method


Metro, Inc. reported net income of $150,000 for the current year. Changes occurred in several balance sheet accounts during the current year as follows:

Investment in Videogold, Inc. stock, carried on the equity basis $5,500 increase

Accumulated depreciation, caused by major repair to projection equipment 2,100 decrease

Premium on bonds payable 1,400 decrease

Deferred income tax liability (long-term) 1,800 increase

In Metro's current year cash flow statement, the reported net cash provided by operating activities under the indirect method should be:

a) $147,000

b) $153,800

c) $144,900

d) $142,800

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Accounting Basics: Operating activities under the indirect method
Reference No:- TGS062704

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