Leduc 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?

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

Leduc Co Reported Sales of $350,000 and Total Expenses of $280,000;