Rachel\'s Recordings reported net income of $250,000. Beginning balances in acco

Question

Rachel's Recordings reported net income of $250,000. Beginning balances in accounts receivable and accounts payable were $17,000 and $23,000 respectively. Ending balances in these accounts were $9,500 and $30,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be:

A. $250,000.

B. $264,500.

C. $257,500.

D. $235,500.

Rachel's Recordings reported net income of $250,000. Beginning balances in accounts receivable and accounts payable were $17,000 and $23,000 respectively. Ending balances in these accounts were $9,500 and $30,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be:

Explanation / Answer

Particulars Amount Net profit as per P&L 250000 Add: Decrease in current assets / Increase in current liabilities Decrease in accounts receivable balance 7500 Increase in accounts payable balance 7000 Net Cash flow from operating activities 264500

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