A firm generated net income of $1000. The depreciation expense was $100 and dividends were paid in the amount of $100. Accounts payables increased by $10, accounts receivables decreased by $20, inventory decreased by $10, and net fixed assets increased by $20. There was no interest expense. Net cash flow from operating activity? A. $1140 B. $1100 C. $1110 D. $1120
A firm generated net income of $1000. The depreciation expense was $100 and dividends were paid in the amount of $100. Accounts payables increased by $10, accounts receivables decreased by $20, inventory decreased by $10, and net fixed assets increased by $20. There was no interest expense. Net cash flow from operating activity? A. $1140 B. $1100 C. $1110 D. $1120
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A firm generated net income of $1000. The
A. $1140
B. $1100
C. $1110
D. $1120
Expert Solution
Step 1: workings to Calculate the net cash flow from operating activity:
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