Question

Bruce Company reported net income for 20X1 of $100,000. The company reported depreciation expense of $17,500 and amortization of $5,000. The company also reported a loss on the sale of equipment of $2,500. Based only on this information, the company would report cash flow from operating activities of:

Answer 1

Answer:

the cash flow from operating activities is $125,000

Explanation:

The computation of the cash flow from operating activities is shown below:

= net income + depreciation expense + amortization expense + loss on sale of an equipment

= $100,000 + $17,500 + $5,000 + $2,500

= $125,000

hence, the cash flow from operating activities is $125,000