Net cash flow from operating activities was:
A) $92,000.
B) $27,000.
C) $63,000.
D) $29,000.
E) $34,000.

Question

Quizplus · Accepted Answer

We need to calculate the net cash flow from operating activities by starting with net income and adding back non-cash expenses and adjusting for changes in current assets and liabilities. Here's the calculation:
Net income: $50,000
Depreciation expense: $25,000
Decrease in accounts receivable: $7,000
Increase in inventory: ($8,000)
Increase in accounts payable: $12,000
Net cash flow from operating activities: $50,000 + $25,000 + $7,000 - $8,000 + $12,000 = $63,000.

Net Cash Flow from Operating Activities Was