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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