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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.
$51,000
B.
$87,000
C.
$177,000
D.
$80,000
E.
$125,000
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