A company had cash revenues of $200,000, cash expenses of $150,000, amortization expense of $15,000, and a gain on the sale of a piece of land of $4,000.What was their cash from operations for the year?

Question

Quizplus · Accepted Answer

Cash from operations is calculated by subtracting cash expenses from cash revenues. In this case, $200,000 - $150,000 = $50,000. Amortization expense and gain on the sale of land are non-cash items and are not considered in the calculation of cash from operations.

A Company Had Cash Revenues of $200,000, Cash Expenses of $150,000