Calculate cash inflow or outflow from operating activities given the following information: profit before tax $11,250; depreciation expense $1,250; interest paid $725; tax paid $1,050; decrease in AR $125; increase in inventory $900; decrease in AP $700.

Question

Quizplus · Accepted Answer

Cash inflow from operating activities = Profit before tax + Depreciation expense + Interest paid - Tax paid - Decrease in AR + Increase in inventory + Decrease in AP= 11,250 + 1,250 + 725 - 1,050 - 125 + 900 + 700= 10,375

Calculate Cash Inflow or Outflow from Operating Activities Given the Following