[john adam]

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]

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.