The statement of cash flows shows the following information. What is the cash from operating activities?
Profit for the year $ 97,500
Depreciation 40,000
Adjustments in non-cash working capital accounts (11,000)
A) $46,500
B) $97,500
C) $126,500
D) $148,500

Question

Quizplus · Accepted Answer

The cash from operating activities is calculated by starting with the profit for the year, then adding back non-cash expenses (such as depreciation), and adjusting for changes in working capital. Therefore, $97,500 (profit) + $40,000 (depreciation) - $11,000 (adjustments in working capital) = $126,500.

The Statement of Cash Flows Shows the Following Information