Question
Analyze the operating cash flow for IBM (International Business Machines Corporation) using the following data: Net Income: $6,000,000 Depreciation Expense: $1,200,000 Changes in working capital:
Analyze the operating cash flow for IBM (International Business Machines Corporation) using the following data:
- Net Income: $6,000,000
- Depreciation Expense: $1,200,000
- Changes in working capital:
- Accounts Receivable: $400,000 increase
- Inventory: $300,000 decrease
- Accounts Payable: $200,000 increase
- Prepaid Expenses: $100,000 decrease
Calculate the operating cash flow and discuss its adequacy for business operations.
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Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
10th Canadian edition Volume 1
978-0134213101, 134213106, 133855376, 978-0133855371
