Monterey corporation reports net income of $260,000 that includes depreciation expense of $30,000 and amortization expense of $20,000. What is the company’s cash inflows from operating activities?

Respuesta :

Cash flow from operating activities is $310,000.

Given net income of $260,000 , depreciation expense of $30,000 and amortization expense of $20,000.

Cash flow from operating activities is to be computed.

The amount of money a firm earns through continuing the regular business operations such as the manufacturing and the selling the  things or providing a service to the clients is referred to as the cash flow from operational activities (CFO).

The formula to compute the cash flow from operating activities is given below:

Cash flow from operating activities= Net income+ Depreciation expense + Amortization expense

Cash inflows from operating activities = $260,000 + $30,000 + $20,000                                                               =$310,000

Therefore, the cash flow from operating activities is $310,000.

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