Allen Company's 2010 income statement reported total revenues,$850,000 and total expenses (including $40,000 depreciation)of $720,000.The 2009 balance sheet reported the following:
Accounts receivable-beginning balance,$50,000 and ending balance,$40,000; accounts payable-beginning balance,$22,000 and ending balance,$28,000.Therefore,based only on this information,how much was the 2010 net cash inflow from operating activities?

Question

Quizplus · Accepted Answer

Net cash inflow from operating activities ($136,000) = Net income ($850,000 - $720,000) + Depreciation expense ($40,000) + Accounts receivable decrease ($10,000) + Accounts payable increase ($6,000)

Allen Company's 2010 Income Statement Reported Total Revenues,$850,000 and Total