Final answer:
The net cash inflow provided by operating activities for Sampson Corporation is $185,000, calculated by adjusting the net income with non-cash expenses and changes in working capital.
Step-by-step explanation:
To calculate the net cash inflow provided by operating activities for Sampson Corporation, we start with the Net Income of $200,000 and adjust for changes in working capital and non-cash expenses. We add back the Depreciation Expense of $60,000 since it is a non-cash charge. An increase in Accounts Receivable of $30,000 implies that not all of the sales that contributed to the net income were collected in cash, so we subtract this amount. Similarly, a decrease in Accounts Payable of $45,000 suggests that the company has paid off some of its liabilities, which is an outflow of cash, so we also subtract this amount. The net cash inflow provided by operating activities is thus calculated as:
- Net Income: $200,000
- Plus: Depreciation Expense: $60,000
- Less: Increase in Accounts Receivable: $30,000
- Less: Decrease in Accounts Payable: $45,000
Adding and subtracting the above amounts from net income, we get a net cash inflow of $185,000 ($200,000 + $60,000 - $30,000 - $45,000 = $185,000).