Question

Question 16 (5 points) The following information is related to Towson Company's fiscal year 2018. Income Statement: Net Income $2,100,000 Depreciation Expense 350,000 Loss on Sale of Plant Assets 75,000 Interest Expense 5,000 Balance Sheet - 12/31/17: Increase (Decrease) Accounts Payable decrease 25,000 Plant Assets - Purchased 250,000 Plant Assets - Disposals (100,000) Additional Information: Common Stock exchanged for outstanding Long Term Notes Payable of $125,000 Dividends paid were $30,000 Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets (). Your Answer: Answer

Answer 1

Answer:

$2,500,000

Cash flows from operating activities:		2100000
Net income
Adjustment to reconcile net income to net cash flow from operating activities
Depreciation expense	350000
Loss on sale of plant assets	75000
Decrease in accounts payable	(25000)	400000
Net cash flows from operative activities		$2500000