-What is Regency's 2012 cash flow from operating activities?
A)$7.4 million
B)$6.1 million
C)$9.4 million
D)$9.7 million

Question

-What is Regency's 2012 cash flow from operating activities?
A)$7.4 million 
B)$6.1 million 
C)$9.4 million 
D)$9.7 million

Quizplus · Accepted Answer

To calculate the cash flow from operating activities, we need to add the net income of $8.1 million and the depreciation expense of $1.3 million and then subtract the increase in accounts receivable of $0.2 million, the increase in inventory of $0.3 million, and the increase in accounts payable of $0.4 million. This gives us a cash flow from operating activities of $9.4 million. Therefore, the correct answer is C.

-What Is Regency's 2012 Cash Flow from Operating Activities