Question

uz 0 Saved Help Save & Exit Submit Chris's Outdoor Furniture, Inc. has net cash flows from operating activities for the last year of $340 million. The income statement shows that net income is $315 million and depreciation expense is $44 million. During the year, the change in inventory on the balance sheet was $34 million, change in accrued wages and taxes was $14 million, and change in accounts payable was $25 million. At the beginning of the year, the balance of accounts receivable was $44 million Calculate the end-of-year balance for accounts receivable. (Enter your answer in millions of dollars.) Accounts receivable million < Prev 10 of 20 II Next > 0 3129/2020

Answer 1

Net Cash Flow from Operating Activities = Net Income + Depreciation - Increase in Inventory + Increase in Accrued wages and taxes +Increase in accounts Payable + (Opening Accounts Receivable - Closing Accounts Receivable)

$340 = $315 + $44 - $34 + $14 + $25 + ($44 - Closing Accounts Receivable)

$340 = $364 + ($44 - Closing Accounts Receivable)

$340 - $364 = $44 - Closing Accounts Receivable

-$24 = $44 - Closing Accounts Receivable

Closing Accounts Receivable = $44 + $24 = $68 million

Closing Accounts Receivable = $68 million