Question

The following information was taken from the 2017 financial statements of Eiger Corporation, a maker of equipment for mountain and rock climbers:

Net income $ 100,000
Depreciation 30,000
Increase (decrease) in
Accounts receivable 110,000
Inventories (50,000 )
Prepaid expenses 15,000
Accounts payable (150,000 )
Salaries payable 15,000
Other current liabilities (70,000 )
Calculate Eiger’s cash flow from operating activities for 2017. (If the cash flow amount is negative, enter your answer with a minus sign.)

Answer 1

Eiger’s cash flow from operating activities for 2017 is - $150,000.

Step-by-step explanation:

Cash flow from Operating Activities

$

Net income 100,000

Adjustments for non-cash items

Depreciation 30,000

Adjustment fro changes in working capital

Increase in Accounts receivable - 110,000

Decrease in Inventories 50,000

Increase in Prepaid expenses - 15,000

Decrease in Accounts payable - 150,000

Increase in Salaries payable 15,000

Decrease in Other current liabilities - 70,000

Net Cash flow from Operating Activities -150,000