i can not find the answer for account receviable for cash flow statement

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:

Get free answers from experts in any of our 300+ topics.
Accept money for answers that you provide.
Communicate privately with other members (PM).
See fewer ads.

Sign Up!

Answer this Question

Ask about Accounting

Ask about another Subject

PDA

john adam

Apr 20, 2009, 01:33 PM

i know that in cash flow statement that use two method the indirect and direct method, i can't seem to find the answer for account receivable using the indirect method. the question show the balance sheet for year 2007 it was 110,000 and for year 2006 it was 89,000 . which the net income for 2007 is 153,000 and depreciation expense is 24000
if it increase the account receivable than what would the answer be.

thank you for your effort and time, i really appreciated

thanks,
john

morgaine300

Apr 20, 2009, 11:41 PM

For the indirect method you start with net income and make a series of adjustments to it.

Current assets are adjusted the opposite direction from what the balance did. That is, if it increased you subtract for the adjusment, and if it decreased you add. Don't learn receivables individually - just more to memorize. All current assets adjust this way.