Assuming Net Income for the year is $115,000,what is the Operating Cash Flows given the following information:
A) $112,000.
B) $88,000.
C) $118,000.
D) $188,000.

Question

Assuming Net Income for the year is $115,000,what is the Operating Cash Flows given the following information: 
A) $112,000. 
B) $88,000. 
C) $118,000. 
D) $188,000.

Quizplus · Accepted Answer

Operating Cash Flows can be calculated using the formula:
Operating Cash Flows = Net Income + Depreciation and Amortization + Increase in Accounts Payable - Increase in Accounts Receivable
Assuming there is no change in Accounts Payable and Accounts Receivable, and no information is given about depreciation and amortization, Operating Cash Flows would simply be equal to Net Income, which is $115,000. Therefore, Option B is the correct answer as it is the closest to the given Net Income figure.

Assuming Net Income for the Year Is $115,000,what Is the Operating