Question

Skrillex Inc. had the following current accounts last year. ($000) Beginning Ending Beginning Ending Cash $ 175 $ 238 Accounts payable $205 $182 Accounts receivable 1,456 2,207 Accruals $95 83 Inventory 943 786 Current assets $2,574 $3,231 Current liabilities $300 $265 In addition, the company had sales revenues of $9,430,000 and costs and expenses (including interest and tax) of $7,510,000. Depreciation of $1,449,000 is included in the cost and expense figures. Construct a statement showing Timberline's Cash from Operating Activities, including a detail of changes in balance sheet accounts. Enter your answers in whole dollars, and not in thousands of dollars. Use a minus sign, to indicate any decreases in cash or cash outflows. Cash Flows From Operating Activities.

Answer 1

Please see explanation below

Step-by-step explanation:

First, we need to determine the net profit.

Net profit = Sales - Cost

= $9,430,000 - $7,510,000

= $1,920,000

Operating activities

Net income. $1,920,000

Add depreciation. $1,449,000

Net changes in current

($629,000)

Cash flow from operating activities $2,740,000