Net income for the year 2019 was $15,000. Accounts receivable increased $12,000, inventories decreased $4,000, and accounts payable decreased $5,000. Depreciation expense included in net income was $6,000. During the year, a piece of land was purchased for $7,000 and a truck was sold for $4,000 when its book value was $5,500. The company borrowed $28,000 on a two-year note from the bank and repaid $15,400 on a short-term note. Dividends of $16,000 were declared during 2019. The balance in Dividends Payable increased by $10,000 for the year. What was net cash flow from operating activities (if a decrease, place your result in parentheses)? Correct Answer: $
Net income for the year 2019 was $15,000. Accounts receivable increased $12,000, inventories decreased $4,000, and accounts payable decreased $5,000. Depreciation expense included in net income was $6,000. During the year, a piece of land was purchased for $7,000 and a truck was sold for $4,000 when its book value was $5,500. The company borrowed $28,000 on a two-year note from the bank and repaid $15,400 on a short-term note. Dividends of $16,000 were declared during 2019. The balance in Dividends Payable increased by $10,000 for the year. What was net cash flow from operating activities (if a decrease, place your result in parentheses)? Correct Answer: $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Net income for the year 2019 was $15,000.
Accounts receivable increased $12,000, inventories decreased $4,000, and accounts payable decreased $5,000.
Depreciation expense included in net income was $6,000.
During the year, a piece of land was purchased for $7,000 and a truck was sold for $4,000 when its book value was $5,500.
The company borrowed $28,000 on a two-year note from the bank and repaid $15,400 on a short-term note. Dividends of $16,000 were declared during 2019. The balance in Dividends Payable increased by $10,000 for the year.
What was net cash flow from operating activities (if a decrease, place your result in parentheses)?
Correct Answer: $
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