Question

Kela Corporation reports net income of $470,000 that includes depreciation expense of $83,000. Also, cash of $44,000 was borrowed on a 6-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Choice $514,000. $553,000. $597,000. $387,000.

Answer 1

The Total cash inflows from operating activities are $553,000

Step-by-step explanation:

According to the given data, the Statement of Cash Flow from Operating Activities would be as follows:

Statement of Cash Flow from Operating Activities

Particulars Amount Total Amount

Income $470,000

Depreciation $83,000

Cash flow from operating activities $553,000

The cash of $44,000 was borrowed on a 6-year note payable. It is Financing Activity since note is long term

Therefore, total cash inflows from operating activities are $553,000