Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000.Also,cash of $50,000 was borrowed on a 5-year note payable.Based on this data,total cash inflows from operating activities are:

Question

Quizplus · Accepted Answer

Cash inflows from operating activities include net income adjusted for non-cash expenses like depreciation. Therefore, $450,000 (net income) + $70,000 (depreciation) = $520,000. The borrowed cash is a financing activity, not an operating activity.

Kela Corporation Reports Net Income of $450,000 That Includes Depreciation