Refer to the information above.For the month of October,net cash flows from operating activities for Waldorf were:
A)$ 18,500.
B)$ 22,500.
C)$ 78,000.
D)$100,500.

Question

Quizplus · Accepted Answer

To calculate net cash flows from operating activities, we need to start with net income of $60,000 and add back depreciation and amortization of $13,500, and subtract the increase in accounts receivable of $15,000 and the increase in inventory of $36,000. Therefore, net cash flows from operating activities for Waldorf in October were $22,500 (60,000+13,500-15,000-36,000).

Refer to the Information Above