Fidelity Systems reports net income of $81 million. Included in that number is depreciation expense of $9 million, and a gain on the sale of equipment of $2 million. Records reveal increases in Accounts Receivable, Inventory, and Accounts Payable of $3 million, $3 million, and $3 million, respectively. Calculate Fidelity's net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign. Enter your answer in millions.)

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Question:

Fidelity Systems reports net income of $81 million. Included in that number is depreciation expense of $9 million, and a gain on the sale of equipment of $2 million. Records reveal increases in Accounts Receivable, Inventory, and Accounts Payable of $3 million, $3 million, and $3 million, respectively. Calculate Fidelity's net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign. Enter your answer in millions.)

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Answer:$85 millionExplanation:As per the given question the solution of net cash flows from operating activities using the indirect method is provided below:- Net cash flow from operating activities = Net income + Depreciation - Gain on sale of equipment - Increase in accounts receivable - Increase in inventory + Increase in accounts payable = $81 million + $9 million - $2 million - $3 million - $3 million + $3 million= $93 million - $8 million= $85 millionSo, we have calculated the net cash flow from operating activities by using the above formula.

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