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Net income 400000 depreciation 20000 increase in A/R 5000 Decrease in A/P 6000 Decrease in prepaid rent 6000 increase in accrual revenue 8000

Baded on these information the cash flow from operation dhould be A-407000 B-423000 C-399000 D-425000

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/21
Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Net income …………400,000 + Depreci@tion………20,000 + Dec. in pp rent ……6,000 - Inc.in A/R ……… (5,000) - Inc. in accru rev..(8,000) - Dec. in A/p …… (6,000) = CF from op ……407,000 So, choice A is the answer

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option >>>>>>>>>>>>>>>>>>>> A-407000

IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

Cash Flow Statement

 

Net Income.........................................................................4,00,000

Depreciation .....................20,000

Increase in A/R ................. (5,000)

Decrease in A/P................. (6,000)

Decrease in PP Rent..........  6,000

Increase in Ac. Revenue......(8,000)

 

             

Hence the Cash Flow will be  4,07,000. (Option A)                           

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(B) is the Correct Ans.

 

 - Depreciation added back

 - Increase in Assets Outflow & Vice Versa

 - Increase in Liabilities Inflow & Vice Versa

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer ( B )is the correct answer Thank you

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