Question

BlueInk Corporation's accumulated depreciation increased by $14,000, while parents decreased by $3,875 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss on sale of land of $1,950. Accounts receivable increased $6,320, inventory decreased $3,125, prepaid expenses decreased $720, and account payable increased $2,760. Reconcile a net income of $55,000 to net cash flow from operating activities.

Answer 1

$69,285

Step-by-step explanation:

Reconcilation of the net income of net cash flow from operating activities.

Cash flow from operating activities

Net income $55,000

Adjustments made to reconcile:

Add: Depreciation expense $14,000

Less Increase in account receivable ($6,320)

Add Decrease in inventory $3,125

Add Decrease in prepaid expense $720

Add Increase in account payable $2,760

Net cash flow from operating activities $69,285

Therefore the net income of net cash flow from operating activities will be $69,285