Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi-Tech, Inc., reports net income of $66.0 million. Included in that number are depreciation expense of $5.6 million and a loss on the sale

image text in transcribed

Hi-Tech, Inc., reports net income of $66.0 million. Included in that number are depreciation expense of $5.6 million and a loss on the sale of equipment of $1.6 million. Records reveal increases in accounts receivable, accounts payable, and inventory of $2.6 million, $3.6 million, and $4.6 million, respectively. What are Hi-Tech's net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).) Answer is complete but not entirely correct. HI-TECH, INC., Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Loss (on sale of equipment) $ 66,000,000.0 5,600,000.0X 1,600,000.0 Increase in accounts receivable Increase in inventory Increase in accounts payable Net cash flows from operating activities (2,600,000.0) (4.600,000.0X 3,600,000.0 69,600,000.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethical Obligations and Decision Making in Accounting Text and Cases

Authors: Steven Mintz, Roselyn Morris

3rd edition

007786221X, 978-0077862213

More Books

Students also viewed these Accounting questions

Question

Why is product design important to operations costs? LO.1

Answered: 1 week ago