From the following information,calculate net cash flow from operating activities.
$$\begin{array}{l}
\begin{array} { l r r }
\text { Sales } & & \$ 185,000 \
\quad \text { Less Salaries } & \$ 40,000 & \
\text { Depreciation } & \$ 13,000 & \
\text { Other expenses } & \$ 10,000 & \
\text { Interest expense } & \$ \underline { 5, 000 } & \$ \underline { 68,000 } \
\text { Profit } & & \$ 117,000 \
\hline
\end{array}\
\text { Statement of financial position extract }\
\begin{array} { l r r }
& \text { Start of } & \text { End of } \
& \text { Period } & \text { Period } \
& \$ & \$ \
\text { Accounts payable } & 11,000 & 14,000 \
\text { Interest expense owing } & - & 1,000
\end{array}
\end{array}$$

Question

From the following information,calculate net cash flow from operating activities.
$$\begin{array}{l}
\begin{array} { l r r } 
\text { Sales } & & \$ 185,000 \
\quad \text { Less Salaries } & \$ 40,000 & \
\text { Depreciation } & \$ 13,000 & \
\text { Other expenses } & \$ 10,000 & \
\text { Interest expense } & \$ \underline { 5, 000 } & \$ \underline { 68,000 } \
\text { Profit } & & \$ 117,000 \
\hline
\end{array}\
\text { Statement of financial position extract }\
\begin{array} { l r r } 
& \text { Start of } & \text { End of } \
& \text { Period } & \text { Period } \
& \$ & \$ \
\text { Accounts payable } & 11,000 & 14,000 \
\text { Interest expense owing } & - & 1,000
\end{array}
\end{array}$$

Quizplus · Accepted Answer

Net cash flow from operating activities = Profit + Depreciation - Increase in accounts payable - Increase in interest expense owing= $117,000 + $13,000 - ($14,000 - $11,000) - ($1,000 - $0)= $117,000 + $13,000 - $3,000 - $1,000= $134,000

From the Following Information,calculate Net Cash Flow from Operating Activities