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Net income $920,000
Depreciation expense110,000
Increase in accounts payable45,000
Increase in accounts receivable73,000
Increase in deferred income tax liability16,000
Doran’s net cash flow from operating activities is
_
a. $928,000.
b. $986,000.
c. $1,018,000.
d. $1,074,000.
Well, as we know that depreciation and increase in deferred tax liability is not cashflow, so it should be added back, plus the difference between accounts payable and receivable. The correct answer is C.
920000+110000+45000=1018000 so the answer is C
c. $1,018,000-----------------------------------------
c. $1,018,000
>>>>>>>>>>>>>>>>>>>>>>>>>
Cash flow from operating activities is option C
c. ...........>>>>>>$1,018,000
Net income $ 920,000
+
Depreciation expense +110,000
+
Increase in accounts payable +45,000
-
Increase in accounts receivable -73,000
+
Increase in deferred income tax liability +16,000
----------------------------------------------------- ------- -----------------
net cash flow from operating activities is 1018000
c. $1,018,000.
Net Income 920000 + Depreciation expense 110000 + Increase in accounts payable 45000 + Increase in accounts receivable 73000 - Increase in deferred income tax liability 16000 + 1018000
Correct Ans is C
Net cashflow from operating activities is1018000
(C) is the Correct Ans.
1,018,000
C. $1,018,000 ======================
