Assume net income was $210,000, depreciation expense was $6,200, accounts receivable decreased by $11,500, and accounts payable decreased by $3,000. The amount of cash flows from operating activities is:

a 224,700

b 210,000

c. 208,300

d 216,200

Question

Business

Denise Quinn

27 August, 23:13

Assume net income was $210,000, depreciation expense was $6,200, accounts receivable decreased by $11,500, and accounts payable decreased by $3,000. The amount of cash flows from operating activities is:

a 224,700

b 210,000

c. 208,300

d 216,200

+3

Answers (1)

Know the Answer?

Armani Pham · Answer 1

Amount of cash flow will be $224700

So option (a) is correct option

Explanation:

We have given net income = $210000

Depreciation expense = $6200

Account receivable is decreased by $11500

And account payable is decreased by $3000

We have to find the amount of cash flow

We know that amount of cash flow is given by

Cash flow = net income + Depreciation expense + amount which is decreased in account receivable - amount which is decreased in account payable

So cash flow = $210000+$6200+$11500-$3000 = $224700

So option (a) is the correct option

Assume net income was $210,000, depreciation expense was $6,200, accounts receivable decreased by $11,500, and accounts payable decreased by $3,000. The amount of cash flows from operating activities is:a 224,700b 210,000c. 208,300d 216,200

Assume net income was $210,000, depreciation expense was $6,200, accounts receivable decreased by $11,500, and accounts payable decreased by $3,000. The amount of cash flows from operating activities is:

a 224,700

b 210,000

c. 208,300

d 216,200