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svlad2 [7]
3 years ago
15

Using the information below, calculate net cash flows from operating activities: Net income $ 120,000 Receive cash from issuing

stock 80,000 Pay cash for equipment 90,000 Increase in accounts receivable 10,000 Depreciation expense $ 30,000 Increase in accounts payable 5,000 Receive cash from sale of land 75,000 Pay cash dividends 20,000
Business
1 answer:
suter [353]3 years ago
5 0

Answer:

Net Cash Flow from Operating Activities is $145,000

Explanation:

Cash Flow from Operating Activities  

Net Income                                                 $120,000  

Adjustment for Non Cash Expenses  

Deprecation Expense                                 $30000

 

Working Capital Changes  

Increase in Accounts Receivables          $(10,000)

Increase in Accounts Payable                   $5000

 

Net Cash Flow from Operating Activities  $145,000  

Please note that:

  • Proceeds from issue of stock and payment of cash dividends relates to Financing Activities of Cash Flow Statement
  • Proceeds from sale of land and cash payment for purchase of equipment relates to Investing Activities of Cash Flow Statement

*figures in brackets represent negative values or cash outflows

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The rule preventing recovery for reasonably avoidable damages is often called the duty to mitigate. True or false
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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
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To find this closing inventory, we need to find the gross profit first and then cost of sales.

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