Assume the following information from the financial statements of ReStateM Company:
Net income $10,000
Depreciation expense $3,000
Salaries expense $5,000
Deferred income taxes $2,000
Change in accounts receivable $4,000
Change in accounts payable -$5,000
Change in inventory -$2,000
Capital expenditures $1,500
The traditional cash flow for ReStateM Company is:
A) $13,000
B) $8,000
C) $15,000
D) $10,000
Correct Answer:
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