Playdough Products earned net income of $400,000 in 2011.The firm increased its accounts receivable during the year by $250,000.The book value of its assets declined by the year's depreciation charge,which was $180,000,and the market value of its assets increased by $20,000.Based only on this information,how much cash did Playdough Products generate during the year?
Please ignore taxes for this problem.

Question

Playdough Products earned net income of $400,000 in 2011.The firm increased its accounts receivable during the year by $250,000.The book value of its assets declined by the year's depreciation charge,which was $180,000,and the market value of its assets increased by $20,000.Based only on this information,how much cash did Playdough Products generate during the year?
 Please ignore taxes for this problem.

Quizplus · Accepted Answer

The Answer of Playdough Products earned net income of $400,000 in 2011.The firm increased its accounts receivable during the year by $250,000.The book value of its assets declined by the year's depreciation charge,which was $180,000,and the market value of its assets increased by $20,000.Based only on this information,how much cash did Playdough Products generate during the year?
 Please ignore taxes for this problem.

Playdough Products Earned Net Income of $400,000 in 2011