Question

Mary's Music Store reported net income of $148,000. Beginning balances in Accounts Receivable and Accounts Payable were $26,500 and $20,500, respectively. Ending balances in these accounts were $31,500 and $14,800, respectively. Assuming that all relevant information has been presented, Mary's net cash flows from operating activities would be:______.
a. $160,900.
b. $131,100.
c. $151,100.
d. $140,900.

Answer 1

Answer:

Net cash flows from operating activities $137,300

Explanation:

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

Net income reported $148,000

Less: Increase in account receivable ($31,500  $26,500) -$5,000

Less: Decrease in account receivable ($14,800 - $20,500) -$5,700

Net cash flows from operating activities $137,300

This is the answer but the same is not provided in the given options