What is Crane's cash flow from operations for its first year?

Question

Quizplus · Accepted Answer

To calculate the cash flow from operations we need to add back non-cash expenses such as depreciation and changes in current assets and liabilities. 
Starting with net income of $300,000, we add back depreciation of $60,000: $300,000 + $60,000 = $360,000.
Next, we subtract the increase in accounts receivable ($40,000) and the increase in inventory ($10,000): $360,000 - $40,000 - $10,000 = $310,000.
Finally, we add the increase in accounts payable ($80,000) and the increase in salaries payable ($19,900): $310,000 + $80,000 + $19,900 = $409,900.
Therefore, the correct answer is C.

What Is Crane's Cash Flow from Operations for Its First