Darwin Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
Net income,$200,000;
Accounts receivable increased $18,000;
Prepaid insurance increased $7,000;
Depreciation expense was $25,000;
Loss on sale of a building was $22,000;
Wages payable increased $14,000;
Unearned revenue decreased $21,000.
How much was Darwin's net cash inflow from operating activities?
A)$227,000
B)$215,000
C)$171,000
D)$257,000

Question

Darwin Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
 Net income,$200,000;
 Accounts receivable increased $18,000;
 Prepaid insurance increased $7,000;
 Depreciation expense was $25,000;
 Loss on sale of a building was $22,000;
 Wages payable increased $14,000;
Unearned revenue decreased $21,000.
How much was Darwin's net cash inflow from operating activities?
A)$227,000
B)$215,000
C)$171,000
D)$257,000

Quizplus · Accepted Answer

Net cash inflow from operating activities ($215,000) = Net income ($200,000) - Accounts receivable increase ($18,000) - Prepaid insurance increase ($7,000) + Depreciation expense ($25,000) + Loss on sale of building ($22,000) + Wages payable increase ($14,000) - Unearned revenue decrease ($21,000)

Darwin Company,a Manufacturer,has Provided the Following Information Pertaining to Its