Answer:
$186,000
Explanation:
Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.
Cash flows from operating activities
Net Income $175,300
Add: Non cash Expense Adjustments:
Depreciation expense $21,300
Amortization of bond premium <u>$5,400 </u>
$26,700
Change in Working Capital:
Increase in inventory ($17,500)
Increase in accounts receivable ($9,700)
Increase in accounts payable $18,500
Decrease in income taxes payable ($7,300)
<u>($16,000)</u>
Net Operating Cash flow <u>$186,000</u>
Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.
Depreciation and amortization are non cash expenses which was deducted in the calculation of Net income.
Increase in Liability will provide the cash and increase in assets will use the cash.
Increase in Bond Payable is the change in long term liability which is not included in the working capital and it is the part of the cash flow from financing activities.
