Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business. To identify: Amount of the operating activity.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

prepare an income statement for delray manufacturing (a manufacturer)assume that its cost of goods manufactured is $1,247,000

On 10/6/2024, company A sells goods to Customer C for €20,000 with an agreed credit of two months. On 31/12/2024, in the context of investigating the collectability of its receivables, the company estimates that it will only collect €10,000 from customer C and forms a provision for doubtful debts for the remaining amount. Finally, on 30/3/2025, company A receives from customer C the amount of: a. €9,000 b. €11,000. You are requested to comment on the impact of the above collection cases a. 9000 b. 11,000 on the income statement for fiscal year 2025, justifying your position.

Need help

Answer 2

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Answer 6

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Answer 7

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Answer 8

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550