Calculate cash from operating activities using the following information:
Profit $\$ 148,000$.
Depreciation $\$ 40,000$.
Inventory increased by $\$ 10,000$.

Question

Quizplus · Accepted Answer

Cash from operating activities is calculated by adjusting the profit for non-cash expenses and changes in working capital. Here, you add depreciation (\$40,000) to profit (\$148,000) and subtract the increase in inventory (\$10,000), resulting in \$178,000.

Calculate Cash from Operating Activities Using the Following Information: Profit $148,000\$ 148,000$148,000

Calculate Cash from Operating Activities Using the Following Information:
Profit $\$ 148,000$