Ashford's Company has an accrual basis net income of $270,000 in 2019 and the following related items: Depreciation expense $57,000 Accounts receivable increase 18,000 Inventory decrease 21,000 Accounts payable decrease 12,000 How much is Ashford's net cash flow from operating activities in 2019?

Ashford's Company has an accrual basis net income of $270,000 in 2019 and the following related items: Depreciation expense $57,000 Accounts receivable increase 18,000 Inventory decrease 21,000 Accounts payable decrease 12,000 How much is Ashford's net cash flow from operating activities in 2019?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Ashford's Company has an accrual basis net income of $270,000 in 2019 and the following related items:

Depreciation expense	$57,000
Accounts receivable increase	18,000
Inventory decrease	21,000
Accounts payable decrease	12,000

How much is Ashford's net cash flow from operating activities in 2019?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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