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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