Question

Assuming net income for the year is $115,000, what is the net cash flows activities given the following information: Increase in salaries Payable D $15,000
epreciation Expense $ 6,000
Increase in Prepaid Rent $24,000
Loss on sale of asset $1,000
Increase in Accounts Payable $25,000
Increase in Inventory $50,000 Multiple Choice a. $112.000 b. $88,000. c. $118,000. d. $188,000

Answer 1

The net working incomes in light of the data given is $88,000.

Cash flow from operations

Net Working Pay $115,000

Changes:

Net Operating Cash-Flows $88,000 Add Depreciation $6,000 Add Loss on Asset Sale $1,000 Add Salaries Payable $15,000 Add Accounts Payable $25,000 Less Prepaid Rent Increase ($24,000) Less Inventory Increase ($50,000)

Final numbers are $88,000 in net operating cash flows.

How does cash flow work?

A company's cash flow is a measure of how much money it spent or brought in over time. On the statement of cash flows, a typical financial statement, cash flow is typically divided into cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.

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