Bird Brain Co.reported net income of $45,000 for the year ended December 31,2016.January 1 balances in accounts receivable and accounts payable were $23,000 and $26,000 respectively.Year-end balances in these accounts were $22,000 and $28,000,respectively.Assuming that all relevant information has been presented,Bird Brain's cash flows from operating activities would be:
A)$48,000.
B)$44,000.
C)$46,000.
D)$45,000.

Question

Quizplus · Accepted Answer

Net income + decrease in accounts receivable + increase in accounts payable = cash flows from operating activities$45,000 + ($22,000 - $23,000) + ($28,000 - $26,000) = $48,000