Use the information below to answer the following questions about the Savoy Corporation.
The Savoy Corporation Income Statement Accounts for the year ending December 31,2014
-Refer to the Savoy Corporation Income Statement Accounts.What is the cash flow for the Savoy Corporation for 2014?
A)$193,000
B)$261,900
C)$135,100
D)$272,000

Question

Use the information below to answer the following questions about the Savoy Corporation.
The Savoy Corporation Income Statement Accounts for the year ending December 31,2014 
-Refer to the Savoy Corporation Income Statement Accounts.What is the cash flow for the Savoy Corporation for 2014?
A)$193,000 
B)$261,900 
C)$135,100 
D)$272,000

Quizplus · Accepted Answer

The cash flow for the Savoy Corporation can be found by adding the net income, depreciation expenses, decrease in accounts receivable, and increase in accounts payable. 
Cash flow = $68,000 + $92,400 + ($12,500) + $108,000 
Cash flow = $261,900. Therefore, the correct answer is option B.

Use the Information Below to Answer the Following Questions About