Question

Fruitvale Company prepared the following income statement for 2018:

Sales $242
Cost of goods sold 175
Gross profit 67
Operating expenses:
Salaries expense $12
Depreciation expense 14
Rent expense 5 31
Operating income 36
Loss on sale of land (4)
Net income $32

Also, the company’s December 31 balance sheet revealed the following:

2018 2017
Accounts payable $24 $15
Accounts receivable 33 14
Land 78 60
Inventory 27 20
Wages payable 7 8

The net increase (decrease) in cash from operating activities for 2018 was: __________

Answer 1

$32

Step-by-step explanation:

Particulars Amount

Cash from operating activities

Net Income $32

Add: Loss on sale of land $4

Depreciation Expense $14

Working Capital Changes

Increase in Accounts Payable $9

Increase in Accounts Receivable -$19

Increase in Inventory -$7

Decrease in Wages Payable -$1

Cash flow from operations $32