In 2011 Newcombe Ltd. had a net profit of $100,000 after charging an amortization expense of $50,000. Inventories had increased by $100,000 and accounts receivable had increased by $50,000 over the year. Accounts payable had remained constant at $250,000. Calculate the cash from operations.
In 2011 Newcombe Ltd. had a net profit of $100,000 after charging an amortization expense of $50,000. Inventories had increased by $100,000 and accounts receivable had increased by $50,000 over the year. Accounts payable had remained constant at $250,000. Calculate the cash from operations.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 5MC
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
Transcribed Image Text:In 2011 Newcombe Ltd. had a net profit of $100,000 after
charging an amortization expense of $50,000. Inventories had
increased by $100,000 and accounts receivable had
increased by $50,000 over the year. Accounts payable had
remained constant at $250,000.
Calculate the cash from operations.
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