Miriam Co.reported sales of $350,000 and total expenses of $280,000;wages payable increased by $12,000;inventory decreased by $25,000;accounts payable decreased by $50,000;and depreciation was $30,000.What was the net cash flow from operating activities?
A)$87,000
B)$40,000
C)$15,000
D)$63,000

Question

Quizplus · Accepted Answer

Net income = Sales - Expenses = $350,000 - $280,000 = $70,000Net cash flow from operating activities = Net income + Depreciation - Increase in wages payable - Decrease in inventory + Decrease in accounts payable= $70,000 + $30,000 - $12,000 - $25,000 + $50,000 = $87,000

Miriam CoReported Sales of $350,000 and Total Expenses of $280,000;wages Payable