The Knight Company reported depreciation expense of $11,000 and net income of $1

Q: The Knight Company reported depreciation expense of $11,000 and net income of $1

The Knight Company Particulars Amount Net Income 17000 Add: Non Cash Expense Depreciation 11,000 Add: Decrease in Current Assets 4,100 Cash From Operation 32,100 Answer- $32,100 Particulars Amount Net Income 17000 Add: Non Cash Expense Depreciation 11,000 Add: Decrease in Current Assets 4,100 Cash From Operation 32,100

ID: 2473928 • Letter: T

Question

The Knight Company reported depreciation expense of $11,000 and net income of $17,000 on its 2011 income statement. During 2011 the company's accounts receivable balance decreased by $4,100. Based on this information alone, what was the amount of cash flow from operating activities?

$12,900.

$17,000.

$34,100.

$32,100.

Explanation / Answer

The Knight Company

Particulars

Amount

Net Income

17000

Add: Non Cash Expense

Depreciation

11,000

Add: Decrease in Current Assets

4,100

Cash From Operation

32,100

Answer- $32,100