Question

Mullinix Inc. reported the following information: net income, $55,000; decrease in accounts receivable, $12,000; decrease in accounts payable, $6,500; and depreciation expense, $10,000. What amount did Mullinix report as cash flow from operating activities on its statement of cash flows?

Answer 1

Mullinix will report $70,500 as Net Cash Provided by operating Activities.

Step-by-step explanation:

CASH FLOWS FROM OPERATING ACTIVITIES $

Net Income 55,000

Adjustments to reconcile net income to

net cash provided by operating activities:

Depreciation on Fixed Assets 10,000

(Increase) Decrease in Current Assets:

Accounts Receivables 12,000

Increase (Decrease) in Current Liabilities:

Accounts Payable (6,500)

NET CASH PROVIDED BY OPERATING ACTIVITIES 70,500