contestada

Mary's Music Store reported net income of $135,000. Beginning balances in Accounts Receivable and Accounts Payable were $29,000 and $26,000, respectively. Ending balances in these accounts were $30,000 and $24,000, respectively. Assuming that all relevant information has been presented, Mary's net cash flows from operating activities would be:
$132,000.
$134,000.
$136,000.
$138,000.

Respuesta :

Answer:

$132,000

Explanation:

Given;

Beginning balances in Accounts Receivable and Accounts Payable were $29,000 and $26,000, respectively

Ending balances in these accounts were $30,000 and $24,000, respectively

Net income = $135,000

Change in payable = $24,000 - $26,000

                               = - $2,000

Change in receivables =  $30,000 - $29,000

                                      = $1,000

Mary's net cash flows from operating activities = $135,000 - $2,000 -$1,000

                                                                              = $132,000

Increase in receivable is a negative cash flow, same as decrease in payable.

Otras preguntas