Mary's Music Store reported net income of $142,000. Beginning balances in Accounts Receivable and Accounts Payable were $25,500 and $18,500, respectively. Ending balances in these accounts were $30,500 and $12,200, respectively. Assuming that all relevant information has been presented, Mary's net cash flows from operating activities would be:

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Business

Kaylah Mora

21 September, 03:20

Mary's Music Store reported net income of $142,000. Beginning balances in Accounts Receivable and Accounts Payable were $25,500 and $18,500, respectively. Ending balances in these accounts were $30,500 and $12,200, respectively. Assuming that all relevant information has been presented, Mary's net cash flows from operating activities would be:

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Kingston Cline · Answer 1

Net cash flow will be $117200

Explanation:

We have given net income = $142000

Account receivable = $2500

And account payable = $18500

So increase in account receivable = $25000 - $18500 = $6500

Ending balance in account is $30500 and $12200

So decrease in account payable = $30500-$1200 = $18300

Now we have to fond the cash flow

So cash flow = $142000 - $6500 - $18300 = $117200