Question

Check My Work (1 remaining) eBook Hampton Industries had $70,000 in cash at year-end 2018 and $16,000 in cash at year-end 2019. The firm invested in property, plant, and equipment totaling the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities $140,000 totaled +$160,000. Round your answers to the nearest dollar, if necessary a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. $ b. If accruals increased by $50,000, receivables and inventories increased by $185,000, and depreciation and amortization totaled $15,000, what was the firm's net income? Check My Work (1 remaining) OlconK

Answer 1

a. Cash flow from Operating Activities : $ 34,000

Net increase in cash for the year = $ 70,000 - $ 16,000 = $ 54,000

CFO - 140,000 + 160,000 = 54,000

CFO = 34,000

b. Net Income : $ 154,000

Net Income + Non-cash expenses + Increase in Accruals - Increase in Receivables & Inventories = 34,000

or Net Income + 15,000 + 50,000 - 185,000 = 34,000

or Net Income = $ 154,000