Quipe Industries provided the following information for the year ending June 30,
ID: 2775641 • Letter: Q
Question
Quipe Industries provided the following information for the year ending June 30, 2014.
Increase in inventories
$ 42
Purchased treasury stock
25
Purchased property and equipment
27
Net income
495
Decrease in accrued income taxes
63
Depreciation and amortization
168
Decrease in accounts payable
15
Increase in accounts receivable
39
Increase in long-term debt
150
What was Quipe Industries’ cash flow from operations for the year ending June 30, 2014?
A.$440
B.
$504
C. $420
D.$392
Increase in inventories
$ 42
Purchased treasury stock
25
Purchased property and equipment
27
Net income
495
Decrease in accrued income taxes
63
Depreciation and amortization
168
Decrease in accounts payable
15
Increase in accounts receivable
39
Increase in long-term debt
150
Explanation / Answer
Cash from operations = Net Income + Depreciation – Decrease in accrued income taxes – Increase in Inventories – Decrease in accounts payable – Increase in accounts receivable = 495 + 168 – 63 – 15 – 39 – 42 = $504
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