Question

"Rachel's Recordings reported net income of $250,000. Beginning balances in Accounts Receivable and Accounts Payable were $20,000 and $23,000 respectively. Ending balances in these accounts were $12,500 and $29,000, respectively. Assuming that all relevant information has been presented, Rachel's net cash flows from operating activities would be:"

Answer 1

Answer: $264,000

Explanation:

Reported net income of $250,000

Accounts Receivable $20,000 - $12,000 = $8,000

Accounts Payable $29,000 - $23,000 = $6,000

Rachel's net cash flows from operating activities would be:

$250,000 + $8,000 + $6000 = $264,000