Depreciation for the year was $80,000 and net income was $323,000.Assume the rest of the company's transactions were cash transactions.How much was net cash from operating activities?
A) $243,000
B) $403,000
C) $323,000
D) None of these answers is correct.

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 - Increase in current assets + Decrease in current assets + Increase in current liabilities - Decrease in current liabilities + Depreciation expense - Gain on sale of equipment + Loss on sale of equipment
Net cash flow from operating activities = $80,000 + $323,000 = $403,000

Depreciation for the Year Was $80,000 and Net Income Was