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bekas [8.4K]
2 years ago
12

A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,0

00 respectively. Ending balances in these accounts were $11,500 and $29,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities?
Business
1 answer:
NikAS [45]2 years ago
8 0

Answer:

$310,500

Explanation:

The first step is to calculste the increase in account payable

= ending amount-beginning balance

= $29,000-$11,500

= $17,500

Decrease in account receivable

= $21,000-$18,000

= $3,000

Therefore the cash flow can be calculated as follows

= $290,000 + $17,500 + $3000

= $310,500

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