What is the operating cash flow for 2011?
A) $520
B) $800
C) $1,015
D) $1,110
E) $1,390

Question

What is the operating cash flow for 2011?
A) $520 
B) $800 
C) $1,015 
D) $1,110 
E) $1,390

Quizplus · Accepted Answer

To calculate operating cash flow, we need to add back non-cash expenses (depreciation and amortization) to net income and then adjust for changes in current assets and liabilities. Using the information provided in the table, we can calculate operating cash flow as follows:
Operating cash flow = Net income + Depreciation and amortization – Increase in accounts receivable – Increase in inventory + Increase in accounts payable
= 500 + 400 – 70 – 105 + 385
= $1,110
Therefore, the correct choice is D.

What Is the Operating Cash Flow for 2011