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Mary's Music Store reported net income of $148,000. Beginning balances in Accounts Receivable and Accounts Payable were $26,500 and $20,500, respectively. Ending balances in these accounts were $31,500 and $14,800, respectively. Assuming that all relevant information has been presented, Mary's net cash flows from operating activities would be:______.

a. $160,900.
b. $131,100.
c. $151,100.
d. $140,900.

User Cheese
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1 Answer

5 votes

Answer:

Net cash flows from operating activities $137,300

Step-by-step explanation:

The computation of the net cash flows from operating activities is shown below:

Net income reported $148,000

Less: Increase in account receivable ($31,500 $26,500) -$5,000

Less: Decrease in account receivable ($14,800 - $20,500) -$5,700

Net cash flows from operating activities $137,300

This is the answer but the same is not provided in the given options

User Shawn Roller
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