单选题
The following information is from the balance sheet of Silverstone Company: Net Income for 5/1/05 to 5/31/05 : $ 8000
【正确答案】
B
【答案解析】Silverstone Company' s cash flow from operations would be calculated as Net Income $ 8000 + Inventory $ 250 Prepaid exp. $ 500 + Depreciation $175 + A/P $ 200 = $ 8125.
Bonds payable is a financing activity and would not be included in the cash flow from operations. The indirect method takes the change in the non-cash accounts and decreases or increases net income to get to the change in cash flow.