The firm's cash flow from operating activities for 2012 was D. $618000.
<h3>What Is the Definition of Cash Flow From Operating Activities (CFO)?</h3>
The cash flow from operating activities formula shows you whether or not your core business activities are successful. If your company generates a positive cash flow from operations, you may be able to fund expansion projects, launch new products, pay dividends, reduce debt, and so on.
The amount of money a company earns from ongoing, regular business activities such as manufacturing and selling goods or providing a service to customers is referred to as cash flow from operating activities (CFO).
It should be noted that the cash flow from operating activities is calculated thus:
= Operating Income + Depreciation – Taxes + Change in Working Capital
= $500000 + $140000 - $50000 + $28000
= $618000.
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Flathead Lake Manufacturing Company has the following in it's financial statement:
Operating Income = $500000 Depreciation = $140000
Taxes = $50000
Change in Working Capital = $28000
The firm's cash flow from operating activities for 2012 was _______. $749,000$719,000$744,000$618,000
