Allen Company\'s income statement reported total revenues, $930,000 and total ex

Question

Allen Company's income statement reported total revenues, $930,000 and total expenses (including $41,000 depreciation) of $735,000. The balance sheet reported the following: accounts receivable—beginning balance, $53,000 and ending balance, $51,500; accounts payable—beginning balance, $26,500 and ending balance, $31,500. Therefore, based only on this information, the net cash inflows from operating activities were:

$242,500

$239,500

$198,500

$232,500

Allen Company's income statement reported total revenues, $930,000 and total expenses (including $41,000 depreciation) of $735,000. The balance sheet reported the following: accounts receivable—beginning balance, $53,000 and ending balance, $51,500; accounts payable—beginning balance, $26,500 and ending balance, $31,500. Therefore, based only on this information, the net cash inflows from operating activities were:

Explanation / Answer

correct option is "A"

Net income    [930000-735000] 195000 Add:depreciation 41000 Decrease in receivable   [53000 - 51500] 1500 Increase in payable   [31500-26500] 5000 Cash flow from operating activity 242,500

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