Question
Bob's, Inc. reported net income of $658,000 and depreciation expense of $57,500 in 20X2. Bob's also reported income of $625,000 and depreciation expense of $67,500
Bob's, Inc. reported net income of $658,000 and depreciation expense of $57,500 in 20X2. Bob's
also reported income of $625,000 and depreciation expense of $67,500 in 20X1. The current portion of the
balance sheets are reproduced below:
20X2 20X1 20X2 20X1
Current Assets Current Liabilities
Cash and marketable securities 1,000 900 Line of credit 0 1,000
Accounts Receivable 1,500 1,600 Accounts Payable 2,200 2,350
Inventory 4,552 4,337 Accrued expenses 1,505 1,605
Prepaid expenses 110 115
Calculate the 20X2 net cash flow from operating activities for Bob's, Inc.
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