Question ID: ICMA 10.QA.P2.004 (Topic: The Indirect Method)
- This topic has 1 reply, 2 voices, and was last updated 1 month, 1 week ago by Lynn Roden.
When calculating the cash flow from operating activities, I answered correctly all the way until I got $35,000 but then I subtracted the decrease in long term debt, yielding an answer of $27,000. The correct answer was $35,000.
Howcome the decrease of $8,000 in Long-term debt isn’t supposed to be subtracted? Isn’t long term debt a liability to be paid off from cash?
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