The Natural Company's cash balance at December 31,2016,was $150,000.The following information was reported on the company statement of cash flows for 2017: The Natural Company's Statement of Cash Flows would report Cash Flows from Operating Activities totaling:

Question

The Natural Company's cash balance at December 31,2016,was $150,000.The following information was reported on the company statement of cash flows for 2017:  The Natural Company's Statement of Cash Flows would report Cash Flows from Operating Activities totaling:

Quizplus · Accepted Answer

To calculate Cash Flows from Operating Activities, we need to add back depreciation and amortization ($80,000), subtract the decrease in accounts receivable ($20,000), add the increase in accounts payable ($60,000), deduct income taxes paid ($40,000), and add net income ($156,000):

$80,000 + (-$20,000) + $60,000 - $40,000 + $156,000 = $236,000

Finally, we need to add the change in the cash balance, which was an increase of $100,000:

$236,000 + $100,000 = $336,000

Therefore, the correct answer is B: $286,000.

The Natural Company's Cash Balance at December 31,2016,was $150,000