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Zielflug [23.3K]
4 years ago
15

Bellingham Inc had the following activity last year:

Business
1 answer:
Pepsi [2]4 years ago
8 0

Answer:

The net cash flow of the year amounts to $32,000

Explanation:

The net cash flow of the year is computed as:

Net cash flow = Net income + Depreciation

= $7,000 + $25,000

= $32,000

Where

Net Income is computed as:

Net Income = Sales - COGS (Cost of goods sold) - Depreciation expense - Selling and administrative expense - Income tax expense

= $300,000 - $170,000 - $25,000 - $95,000 - $3,000

= $7,000

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