East, Inc. reports $125,000 net income for the Example: On January 1, 2025, a corporation
year ended Dec. 31, 2009. sells $1,000,000, 5 year, 10% bonds at 98%.
Accounts Receivable increased by $7,500 Interest is payable on July 1 and January 1.
during the year and Accounts Payable
Entries to record the sale on January 1:
increased by $10, 000.
During 2009, East reported $12,500 of Cash Bonds Payable
Depreciation Expense.
980,000 1,000,000
What is East, Inc.’s Operating Cash Flow using the indirect
method for 2009?