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At the end of the current fiscal year, Premiere Company reported net income of $25,000. In addition, the following information is available.

 

 

Prior Fiscal Year   Current Fiscal Year

 

Accounts receivable $10,000   :    $12,000

 

Inventories22,000    :     19,000

 

Prepaid expenses6,000    :     7,000

 

Accounts payable14,000    :   19,000

 

Long-term debt70,000    :   62,000

What amount should be reported as cash flow from operating activities on Premiere’s Statement of Cash Flows for the current fiscal year?

a. $25,000.

b. $27,000.

c. $33,000.

d. $30,000.

 

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Question added by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia
Date Posted: 2015/05/17
Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(D) is the Correct Ans.

 

30,000

 

Detail can be provided on demand.

Thank you;.

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

d $30,000

.............................

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

d. >>>>>>>>>>>>>>>>>>>>>>>>>>> $30,000.

Ahmer Zamir
by Ahmer Zamir , Consultant , Saleem Associates & Co

The Correct option is D)30,000

 

The Net Income =                                             25,000

Adustments of working capital changes

Increase in Rcceivables                                    (2,000)

Decreae in Inventory                                           3,000

Increae in Prepaid                                               (1,000)

Decrease in Payables                                        5,000                         

                                                                                30,000

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Dear brother the correct answer for your question is choice D $30,000

Thanks

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

d. $30,000==========================================

Mirza Gul Rehman Baig
by Mirza Gul Rehman Baig , Accountant , Fazal Cloth Mills Limited.

D>.................................................//////////////. $30,000.

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

D is the correct answer 

Thank you 

PRADEEP VELAYUDHAN
by PRADEEP VELAYUDHAN , Chief Accountant , Super Group

correct answer is d-$30000

Mohammad Masbah Uddin Apel
by Mohammad Masbah Uddin Apel , Sr. Executive - Finance & Accounts , STS Holdings Limited

Ans: D is the correct answer that is  30,000

عبدالحميد عفلي
by عبدالحميد عفلي , متصرّف مسؤول المحاسبة العامة والنزاعات الجبائية , الشركة الجهوية للنقل بالقيروان

.................30000 agree with answers

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