JJ's has net sales of $48,920,depreciation of $711,cost of goods sold of $31,890,administrative costs of $11,210,interest expense of $680,dividends paid of $450,and taxes of $974.What is the cash flow from operations as it will appear on the accounting statement of cash flows if the firm spent $274 on net working capital?
A)$3,892
B)$3,056
C)$4,066
D)$3,667
E)$3,391

Question

Quizplus · Accepted Answer

Net income = Net sales - Cost of goods sold - Depreciation - Administrative costs - Interest expense + Dividends paid + Taxes= $48,920 - $31,890 - $711 - $11,210 - $680 + $450 + $974= $4,066Cash flow from operations = Net income + Depreciation - Net working capital= $4,066 + $711 - $274= $3,892

JJ's Has Net Sales of $48,920,depreciation of $711,cost of Goods