Use the following information for Chambers Corporation to answer the following questions: 20x1 &

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Use the following information for Chambers Corporation to answer the following questions: 20x1 &

Use the following information for Chambers Corporation to answer the following questions:

20x1 20x2

Net Income $825,000 $930,000

Depreciation Expense 130,000 165,000

Inventory 1,200,000 1,640,000

Gross Fixed Assets 4,500,000 4,850,000

Dividends Paid 110,000 110,000

Accounts Receivable 700,000 810,000

Issued Common Stock 1,500,000 0

Accounts Payable 400,000 430,000

Long-Term Debt 1,100,000 1,600,000

Accruals 150,000 140,000

Net Fixed Assets 2,000,000 2,550,000

Cash 400,000 1,005,000

Calculate the net cash from operating activities for Chambers Corporation for the year 20x2?

Select one:

a.

Negative $260,000

b.

$1,170,000

c.

$565,000

d.

$85,000

business finance

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Answer 1

Answer #1

cash flow from operating activities = net income + depreciation - increase in inventory - increase in account receivables + increase in account payables - decrease in accruals

= 930000+165000-(1640000-1200000)-(810000-700000)+(430000-400000)-(150000-140000)

= 930000+165000-440000-110000+30000-10000 = 565000

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Answer 2

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