Winn Company's 20B income statement reported total revenues,$110,000,and total expenses (including $10,000 depreciation),$70,000 .The 20B balance sheet reported the following: trade receivables--beginning balance,$16,000 and ending balance,$14,000; wages payable--beginning balance,$2,000 and ending balance,$1,500.Therefore,based only on this information,the 20B net cash inflow from operating activities was which of the following?

Question

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The net income is $40,000 ($110,000 revenues - $70,000 expenses). Adjust for non-cash depreciation by adding back $10,000, resulting in $50,000. Adjust for changes in working capital: decrease in trade receivables ($16,000 - $14,000 = $2,000 increase in cash) and decrease in wages payable ($2,000 - $1,500 = $500 decrease in cash). Thus, net cash inflow is $50,000 + $2,000 - $500 = $51,500.

Winn Company's 20B Income Statement Reported Total Revenues,$110,000,and Total Expenses