Rice Company,a retailer,has provided the following information pertaining to its recent year of operation:
Net income,$100,000;
Accounts receivable increased $9,000;
Prepaid insurance decreased $3,000;
Depreciation expense was $15,000;
Gain on sale of land,$2,000;
Wages payable decreased $7,000;
Unearned revenue increased $11,000.
How much was Rice's net cash inflow from operating activities?
A)$89,000
B)$115,000
C)$125,000
D)$111,000

Question

Rice Company,a retailer,has provided the following information pertaining to its recent year of operation:
 Net income,$100,000;
Accounts receivable increased $9,000;
 Prepaid insurance decreased $3,000;
 Depreciation expense was $15,000;
Gain on sale of land,$2,000;
Wages payable decreased $7,000;
 Unearned revenue increased $11,000.
How much was Rice's net cash inflow from operating activities?
A)$89,000
B)$115,000
C)$125,000
D)$111,000

Quizplus · Accepted Answer

Net cash inflow from operating activities ($111,000) = Net income ($100,000) - Accounts receivable increase ($9,000) + Prepaid insurance decrease ($3,000) + Depreciation expense ($15,000) - Gain on sale of land ($2,000) - Wages payable decrease ($7,000) + Unearned revenue increase ($11,000)

Rice Company,a Retailer,has Provided the Following Information Pertaining to Its