Allen Company reported total sales revenue of $150,000 and total expenses of $152,000 for the year ended December 31,20D.During 20D,trade receivables decreased by $1,000,trade payables increased by $5,000,wages payable increased by $3,000,and $18,000 in depreciation expense was recorded.Assuming no other adjustments are needed,what was the "net cash flow from operating activities" for 20D (parentheses indicate net cash outflow)?
A)($1,000).
B)$23,000.
C)$25,000.
D)$29,000.

Question

Quizplus · Accepted Answer

The net cash flow from operating activities is calculated by adjusting net income for changes in working capital and non-cash expenses. The net loss is $2,000 ($150,000 - $152,000). Adjustments include adding back non-cash depreciation ($18,000), decreasing trade receivables ($1,000), increasing trade payables ($5,000), and increasing wages payable ($3,000). The total adjustment is $27,000, resulting in a net cash flow of $25,000 ($2,000 loss + $27,000 adjustments).

Allen Company Reported Total Sales Revenue of $150,000 and Total