What is the firm's net cash flow from operating activities?
A) $304,322
B) $299,176
C) $192,602
D) None of the above.

Question

Quizplus · Accepted Answer

To calculate the net cash flow from operating activities, we need to look at the cash flow statement provided. We start with Net Income of $228,412 and make adjustments for non-cash items such as depreciation and amortization ($46,118), a decrease in accounts receivable ($15,849), an increase in prepaid expenses ($1,989), an increase in accounts payable ($3,282), and a decrease in accrued liabilities ($12,766). Adding back these adjustments gives us net cash flow from operating activities of $299,176, which is answer choice B.

What Is the Firm's Net Cash Flow from Operating Activities