Allen Company reported total sales revenue of $150,000 and total expenses of $152,000 for the year ended December 31, 20D. During 20D, trade receivables decreased by $1,000, trade payables increased by $5,000, wages payable increased by $3,000, and $18,000 in depreciation expense was recorded. Assuming no other adjustments are needed, what was the "net cash flow from operating activities" for 20D (parentheses indicate net cash outflow)?
A) $25,000.
B) $29,000.
C) ($1,000).
D) $23,000.

Question

Quizplus · Accepted Answer

Net income = $150,000 - $152,000 = ($2,000)Net cash flow from operating activities = Net income + Depreciation expense + Decrease in trade receivables - Increase in trade payables - Increase in wages payable= ($2,000) + $18,000 + $1,000 - $5,000 - $3,000= $25,000

Allen Company Reported Total Sales Revenue of $150,000 and Total