Question

A company reported net income of $260,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $23,000 respectively. Ending balances in these accounts were $13,500 and $28,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities

Answer 1

$260,500

Step-by-step explanation:

Cash flow from Operating Activities

Net income $260,000

Adjustment for changes in working capital :

Decrease in Accounts Receivable ($4,500)

Increase in Accounts Payable $5,000

Net Cash From Operating Activities $260,500