You have extracted the following information from Salt\'s accounts for the year

Question

You have extracted the following information from Salt's accounts for the year ended 31 December: Net Profit $400 Depreciation ncrease in Receivables Decreases in Payables ncrease in Inventory $80 $40 $26 $20 Assuming the above data is in '000, which of the following is the cash flow from operating activities and the net cash flow? Select one: a. CFO $394,000 and Net Cash Flow $1,394 b. CFO $446,000 and Net Cash Flow $500,000 X c. CFO $446,000 and Net Cash Flow $800,000 d. CFO $394,000 and Net Cash Flow $500,000

Explanation / Answer

Cash flow from operating activities: Net profit 400000 Adjustments: Depreciation 80000 Increase in receivables -40000 Decrease in payables -26000 Increase in inventory -20000 Cash flow from operating activities 394000 Net cash flow = 500000 Option D is correct

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.