Question
  1. The financial statements of Acme Co. include the following items (amounts in thousands):

The financial statements of Acme Co. include the following items (amounts in thousands): For the Year Ended March 31, Income

  1. Calculate the net cash flow provided by operations for Acme Co. for the year ended March 31, 2018.

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Answer #1

Depreciation should be added back to net income.

Decrease in accounts receivable should be added.

Increase in inventory should be deducted.

Increase in accounts payable should be added.

Decrease in income tax payable should be deducted.

Net cash flow provided from operating activities:

= $1,700 + $1,300 + $200 - $100 + $100 - $100

= $3,100

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