The Knott Company reported depreciation expense of $10,000 and net income of $16,000 on its 2014 income statement.During the year,2014 the company's accounts receivableAccounts Receivable balance decreased by $4,000.Based on this information,what was the amount of cash flow fromnet cash flow from operating activities?
A) $12,000.
B) 16,000.
C) $32,000.
D) $30,000.

Question

Quizplus · Accepted Answer

Net cash flow from operating activities = Net income +/- Adjustments to reconcile net income to net cash flow from operating activities
Net cash flow from operating activities = Net income + Decrease in accounts receivable + Depreciation expense
Net cash flow from operating activities = $16,000 + $4,000 + $10,000 = $30,000

The Knott Company Reported Depreciation Expense of $10,000 and Net