Answer: $215,000
Explanation: Using the indirect method, Net cash  by Darwin company is given Â
= Net Cash Flow from Operating Activities of Darwin Company.
Net income                            $200,000
Accounts receivable (subtract) Â Â Â Â Â Â Â Â Â Â Â $18,000
Prepaid insurance increase (subtract ) Â Â Â Â Â Â $7,000
Depreciation expense  (add)              $25,000
Loss on sale of a building (add) Â Â Â Â Â Â Â Â Â Â Â Â $22,000
Wages payable increased (add) Â Â Â Â Â Â Â Â Â Â Â $14,000
Unearned revenue decreased ( subtract ) Â Â $21,000
Net Cash  Flow                         $215,000
In general, the formula for calculating indirect method for Net Cash Flow is Net Income  +Non-Cash Expenses:(Depreciation, Depletion & Amortization Expense)+Non-Operating Losses:
(Loss on Sale of Non-Current Assets)  − Non-Operating Gains:  (Gain on Sale of Non-Current Assets)  + Decrease in Current Assets:(Accounts Receivable, Prepaid Expenses, Inventory etc.)  − Increase in Current Assets+Increase in Current Liabilities:(Accounts Payable, Accrued Liabilities, Income Tax Payable etc.)  − Decrease in Current Liabilities (from xplaind.com)
According to the indirect method, Our Net cash flow will be
Net cash flow =Net  income - (Accounts receivable increase  +  prepaid insurance increase + unearned revenue decrease ) + (Depreciation expense + loss on sale of building + wages payable  increase)
Net Cash flow=$200,000 -($18,000+$7,000+$21,000) + (25,000+22,000 14,000)= $215,000
