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Tri-Star Products Inc. had the following financial summary information for the operating year recently ended: Net revenues $830,000,000 Gross profit 332,000,000 Operating income 165,000,000 Interest expense 17,000,000 Earnings before taxes 120,000,000 Net income 72,000,000 Changes in operating assets/liabilities: Decrease in accounts payable Increase in interest payable Decrease in inventories Increase in income taxes payable Increase in accounts receivable (40,000,000) 3,500,000 (24,000,000) 10,000,000 125,000,000 Other financial information: Dividend income received Gain on sale of assets Using the financial information above, what is the company's reported operating cash flow under the direct method? a. 98,500,000 b. 137,900,000 c.139,500,000 d/ 146,500,000 7,000,000 1,400,000

Tri-Star Products Inc. had the following financial summary information for the operating year recently ended: Net revenues $830,000,000 Gross profit 332,000,000 Operating income 165,000,000 Interest expense 17,000,000 Earnings before taxes 120,000,000 Net income 72,000,000 Changes in operating assets/liabilities: Decrease in accounts payable Increase in interest payable Decrease in inventories Increase in income taxes payable Increase in accounts receivable (40,000,000) 3,500,000 (24,000,000) 10,000,000 125,000,000 Other financial information: Dividend income received Gain on sale of assets Using the financial information above, what is the company's reported operating cash flow under the direct method? a. 98,500,000 b. 137,900,000 c.139,500,000 d/ 146,500,000 7,000,000 1,400,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tri-Star Products Inc. had the following financial summary information for the operating year recently ended: Net revenues Gross profit Operating income Interest expense Earnings before taxes Net income Changes in operating assets/liabilities: Decrease in accounts payable Increase in interest payable Decrease in inventories Increase in income taxes payable Increase in accounts receivable Other financial information: Dividend income received $830,000,000 332,000,000 165,000,000 17,000,000 120,000,000 72,000,000 (40,000,000) 3,500,000 (24,000,000) 10,000,000 125,000,000 7,000,000 1,400,000 Gain on sale of assets Using the financial information above, what is the company's reported operating cash flow under the direct method? a. 98,500,000 b. 137,900,000 c.139,500,000 d/ 146,500,000
Transcribed Image Text:Tri-Star Products Inc. had the following financial summary information for the operating year recently ended: Net revenues Gross profit Operating income Interest expense Earnings before taxes Net income Changes in operating assets/liabilities: Decrease in accounts payable Increase in interest payable Decrease in inventories Increase in income taxes payable Increase in accounts receivable Other financial information: Dividend income received $830,000,000 332,000,000 165,000,000 17,000,000 120,000,000 72,000,000 (40,000,000) 3,500,000 (24,000,000) 10,000,000 125,000,000 7,000,000 1,400,000 Gain on sale of assets Using the financial information above, what is the company's reported operating cash flow under the direct method? a. 98,500,000 b. 137,900,000 c.139,500,000 d/ 146,500,000
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