RM Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
Net income,$300,000;
Accounts payable increased $24,000;
Prepaid rent decreased $10,000;
Depreciation expense was $35,000;
Accounts receivable increased $34,000;
Gain on sale of a building was $11,000;
Wages payable decreased $21,000;
Unearned revenue increased $44,000.
How much was RM's net cash inflow from operating activities?

Question

RM Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
 Net income,$300,000;
 Accounts payable increased $24,000;
 Prepaid rent decreased $10,000;
 Depreciation expense was $35,000;
 Accounts receivable increased $34,000;
 Gain on sale of a building was $11,000;
 Wages payable decreased $21,000;
 Unearned revenue increased $44,000.
How much was RM's net cash inflow from operating activities?

Quizplus · Accepted Answer

Net cash inflow from operating activities ($347,000) = Net income ($300,000) + Accounts payable increase ($24,000) + Prepaid rent decrease ($10,000) + Depreciation expense ($35,000) - Accounts receivable increase ($34,000) - Gain on sale of building ($11,000) - Wages payable decrease ($21,000) + Unearned revenue increase ($44,000)

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