93.1k views
2 votes
Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain on the sale of land of $1.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.3 million, $3.3 million, and $4.3 million, respectively. What are Engineering Wonders' net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i.e., $10,000,000 should be entered as 10).)

User Ryohei
by
8.3k points

1 Answer

3 votes

Answer:

70.3

Step-by-step explanation:

The calculation of net cash flows from operating activities is shown below:-

Engineering Wonders reports

Net cash flow from operating activities

Particulars Amount

Net income 63

Adjustment to reconcile net

income to net cash

flow from operating activities

Add: Depreciation expense 5.3

Less: Gain on sale of land 1.3

Add: Decrease in Accounts

receivable 2.3

Less: Decrease in accounts

payable 3.3

Add: Decrease in inventory 4.3

Net cash flow from operating

activities 70.3

Therefore the net cash flow from operating activities is 70.3.

User Gary Russell
by
7.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.