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8 August, 02:58

Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain on the sale of land of $1.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.3 million, $3.3 million, and $4.3 million, respectively. What are Engineering Wonders' net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i. e., $10,000,000 should be entered as 10).)

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  1. 8 August, 06:13
    0
    70.3

    Explanation:

    The calculation of net cash flows from operating activities is shown below:-

    Engineering Wonders reports

    Net cash flow from operating activities

    Particulars Amount

    Net income 63

    Adjustment to reconcile net

    income to net cash

    flow from operating activities

    Add: Depreciation expense 5.3

    Less: Gain on sale of land 1.3

    Add: Decrease in Accounts

    receivable 2.3

    Less: Decrease in accounts

    payable 3.3

    Add: Decrease in inventory 4.3

    Net cash flow from operating

    activities 70.3

    Therefore the net cash flow from operating activities is 70.3.
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