Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respec

Question

3 years ago

11

Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respec

tively. Income reported on the income statement for the year was $320,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Business

1 answer:

solmaris [256] · Answer 1 · 2022-08-06T02:39:01+03:00

Answer:

$330,000

Explanation:

Change in WC = Opening receivables - Closing receivables

Change in WC = $84,000 - $74,000

Change in WC = $10,000

The decrease in working capital is $10,000

Cash from operating activities = Net income + Decrease in Working Capital

Cash from operating activities = $320,000 + $10,000

Cash from operating activities = $330,000

Thus, the cash from operating activities is $330,000