Question

The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense $20 Increase in deferred tax asset $5 Gain on sale of assets $35 Decrease in long-term debt $50 Increase in inventories $25 Decrease in accounts payable $15 What is cash flow from operating activities for Felix Company

Answer 1

Answer:

$240

Explanation:

The computation of cash flow from operating activities of Felix company is seen below;

= Net income - Decrease in plant and machinery + decrease in expense - increase in deferred assets + gain on sale of assets

= $300 - $40 + $20 - $5 + $35

= $240

Therefore, cash flow from operating income of Felix company is $240