Question

Engineering Wonders reports net income of $56.0 million. Included in that number is building depreciation expense of $4.6 million and a gain on the sale of land of $1.4 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $1.6 million, $2.6 million, and $3.6 million, respectively.
What are Engineering Wonders' net cash flows from operating activities?

Answer 1

Answer:

The answer is attached;

Explanation:

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Answer 2

Answer:

Engineering Wonders' net cash flows from operating activities are $61.8 million

Explanation:

Net income from operating activities = net income - gain on the sale of land + building depreciation expense = $56.0 - $1.4 + $4.6 = $59.2 million

Engineering Wonders' net cash flows from operating activities = Net Income from operating activities + Decrease in Accounts Receivable + Decrease in Inventory - Decrease in accounts payable = $59.2 + $1.6 + $3.6 - $2.6 = $61.8 million