Based on the following information for Pinkerly Inc., a fictitious company, what are the total adjustments that the company would make to net income in order to derive operating cash flow? (please write dollar amount as well) Income Statement Item 12/31/2018 (Year Ended) Net income $30 million Depreciation $7 million Balance sheet item 12/31/2017 12/31/2018 Change Accounts receivable $15 million $30 million $15 million Inventory $16 million $13 million ($3 million) Accounts payable $10 million $20 million $10 million
Based on the following information for Pinkerly Inc., a fictitious company, what are the total adjustments that the company would make to net income in order to derive operating cash flow? (please write dollar amount as well) Income Statement Item 12/31/2018 (Year Ended) Net income $30 million Depreciation $7 million Balance sheet item 12/31/2017 12/31/2018 Change Accounts receivable $15 million $30 million $15 million Inventory $16 million $13 million ($3 million) Accounts payable $10 million $20 million $10 million
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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Based on the following information for Pinkerly Inc., a fictitious company, what are the total adjustments that the company would make to net income in order to derive operating cash flow? (please write dollar amount as well)
| Income Statement Item | 12/31/2018 (Year Ended) |
| Net income | $30 million |
| $7 million |
| 12/31/2017 | 12/31/2018 | Change | |
| Accounts receivable | $15 million | $30 million | $15 million |
| Inventory | $16 million | $13 million | ($3 million) |
| Accounts payable | $10 million | $20 million | $10 million |
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