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9 November, 00:43

Assuming Net Income for the year is $250,000, what is the net operating cash flows given the following information:

Increase in Salaries Payable $19,500

Depreciation Expense $6,000

Increase in Prepaid Rent $29,000

Loss on sale of asset $1,350

Increase in Accounts Payable $29,000

Increase in Inventory $61,000

a) $338,650

b) $215,850

c) $244,850

d) $250,850

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  1. 9 November, 01:37
    0
    Operating Cash Flows $215,850

    Explanation:

    Calaculation of Net operating Cash flow

    Net Income$250,000

    Adjustments for noncash effects:

    Depreciation Expense 6,000

    Loss on sale of asset 1,350

    Changes in current assets and current liabilities:

    Increase in Salaries Payable 19,500

    Increase in Prepaid Rent (29,000)

    Increase in Accounts Payable 29,000

    Increase in Inventory (61,000)

    Operating Cash Flows $215,850
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