Question

Super Grocers, Inc., provided the following financial information for the quarter ending September 30, 2006: Depreciation and amortization – $133,414 Net income – $341,463 Increase in receivables – $112,709 Increase in inventory – $81,336 Increase in accounts payables – $62,411 Decrease in marketable securities – $31,225 What is the cash flow from operating activities generated during this quarter by the firm?

Answer 1

Answer:

Cash flow from operating activities generated during this quarter by the firm is $374,468

Explanation:

Cash flow from Operating activities adjusts the Net Income with, Non Cash Items,Items presented separately in the Cash flow and Working Capital items.

Cash flow from operating activities:

Net income                                                    $341,463

Adjustments for Non -Cash Items:

Depreciation and amortization                    $133,414

Adjustments of Working Capital Items:

Increase in receivables                                ($112,709)

Increase in inventory                                    ($81,336)

Increase in accounts payables                     $62,411

Decrease in marketable securities               $31,225

Net Cash flow from operating activities      $374,468