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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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