The following information is for Carson Company: Additional data for 2013: (1) Sales on account for the period were $160,000.
(2) Operating expenses for the period were $104,000.
Based on this limited information, what was the net cash inflow from operations?
A)$36,000.
B)$44,000.
C)$56,000.
D)$68,000.

Question

The following information is for Carson Company:  Additional data for 2013: (1) Sales on account for the period were $160,000.
(2) Operating expenses for the period were $104,000.
Based on this limited information, what was the net cash inflow from operations?
A)$36,000. 
B)$44,000. 
C)$56,000. 
D)$68,000.

Quizplus · Accepted Answer

$160,000 sales - $104,000 operating expenses = $56,000 net income; $56,000 + $48,000 decr. in accounts receivable - $24,000 incr. in prepaid rent - $12,000 salaries payable = $68,000 cash flows from operations

The Following Information Is for Carson Company: Additional Data