Baird Company reported depreciation expense of $10,000 and net income of $16,000 on its Year 1 income statement.During Year 1,the company's accounts receivable balance decreased by $4,000.Based on this information alone,what was the amount of cash flow from operating activities?
A)$12,000
B)$16,000
C)$32,000
D)$30,000

Question

Quizplus · Accepted Answer

Net cash flow from operating activities = Net income of $16,000 + Deprecation expense of $10,000 + Decrease in accounts receivable of $4,000 = $30,000

Baird Company Reported Depreciation Expense of $10,000 and Net Income