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

Question

Baded on these information the cash flow from operation dhould be

A-407000

B-423000

C-399000

D-425000

Ahmed Abdi Mahad · Answer

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 · Answer

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

IMRAN ALI MOHAMMED · Answer

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 · Answer

(B) is the Correct Ans.

- Depreciation added back

- Increase in Assets Outflow & Vice Versa

- Increase in Liabilities Inflow & Vice Versa

Ahmed kandil · Answer

Answer ( B )is the correct answer Thank you