Accounts Receivable amounted to $215,000 at the beginning of the year and $215,000 at the end of the year.Net income reported on the income statement for the year was $300,000.The net cash flow from operating activities on the cash flow statement using the indirect method is:
A)$300,000.
B)$330,000.
C)$270,000.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

Since accounts receivable did not change during the year, there is no adjustment needed for changes in working capital. Therefore, the net cash flow from operating activities is the same as the net income, which is $300,000.

Accounts Receivable Amounted to $215,000 at the Beginning of the Year