Question
?Let's Do? This, Inc. had an operating income of? $35,000 for the year just ended. Balances in the? company's current asset and current liability accounts
?Let's Do? This, Inc. had an operating income of? $35,000 for the year just ended. Balances in the? company's current asset and current liability accounts at the beginning and of the year were as? follows:
| Beginning | Ending |
Cash | ?$30,000 | ?$40,000 |
Accounts Receivable | ?$125,000 | ?$106,000 |
Inventory | ?$213,000 | ?$180,000 |
Accounts Payable | ?$210,000 | ?$195,000 |
The company reported? $350,000 in Sales Revenue and a Gross Profit of? $140,000. Depreciation expense totaled? $8,000. Using the direct? method, compute the?company's cash flow from operating activities for the year.? (assume only inventory purchases are included in accounts? payable)
A.
?$80,000
B.
?$125,000
C.
?$51,000
D.
?$87,000
E.
?$177,000
Let's Do This Inc. had an operating income of $35,000 for the year just ended. Balances in the company's current asset and current liability accounts at the beginning and of the year were as follows: Beginning Ending $30,000 $40,000 Cash Accounts Receivable $125,000 $106,000 $213,000 $180,000 Inventory Accounts Payable $210,000 $195,000 The company reported $350,000 in Sales Revenue and a Gross Profit of $140,000. Depreciation expense totaled $8,000. Using the direct method, compute the company's cash flow from operating activities for the year. (assume only inventory purchases are included in accounts payable) O A. $80,000 OB. $125,000 O C. $51,000 O D. $87,000 O E. $177,000
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