Mary's Music Store reported net income of $135,000.Beginning balances in Accounts Receivable and Accounts Payable were $29,000 and $26,000,respectively.Ending balances in these accounts were $30,000 and $24,000,respectively.Assuming that all relevant information has been presented,Mary's cash flows from operating activities would be:
A)$132,000.
B)$134,000.
C)$136,000.
D)$138,000.

Question

Quizplus · Accepted Answer

Net income + Increase in Accounts Receivable - Decrease in Accounts Payable = Cash Flows from Operating Activities$135,000 + $1,000 - $2,000 = $134,000

Mary's Music Store Reported Net Income of $135,000