Calculate the cash from operating activities using the following information:

Profit $142,000.
Depreciation $46,000.
Accounts receivable increased by $10,000.
Accrued expense increased by $12,000.
Inventory increased by $14,000.
A)$176,000.
B)$186,000.
C)$165,000.
D)$200,000.

Question

Calculate the cash from operating activities using the following information:

Profit $142,000.
Depreciation $46,000.
Accounts receivable increased by $10,000.
Accrued expense increased by $12,000.
Inventory increased by $14,000.
A)$176,000.
B)$186,000.
C)$165,000.
D)$200,000.

Quizplus · Accepted Answer

Cash from operating activities = Profit + Depreciation - Increase in Accounts Receivable - Increase in Accrued Expense - Increase in Inventory= 142,000 + 46,000 - 10,000 - 12,000 - 14,000= $176,000

Calculate the Cash from Operating Activities Using the Following Information