Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000.Also,cash of $50,000 was borrowed on a 5-year note payable.Based on this data,total cash inflows from operating activities are:
A) $380,000.
B) $470,000.
C) $520,000.
D) $570,000.

Question

Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000.Also,cash of $50,000 was borrowed on a 5-year note payable.Based on this data,total cash inflows from operating activities are:
A)	$380,000.
B)	$470,000.
C)	$520,000.
D)	$570,000.

Quizplus · Accepted Answer

Cash inflows from operating activities include net income plus non-cash expenses like depreciation. Therefore, $450,000 (net income) + $70,000 (depreciation) = $520,000. The borrowed cash is not included in operating activities.

Kela Corporation Reports Net Income of $450,000 That Includes Depreciation