Accounts receivable arising from sales to customers amounted to $45,000 and $50,

Question

Accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively. Merchandise inventory accounts amounted to $115,000 and 105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $150,000. Based on these transactions, which of the following would be the cash flows from operating activities to be reported on the statement of cash flows? $195,000 $145,000 $115,000 $155,000

Explanation / Answer

Answer is 155000

Net inome 150000 Less increase in Account Receivable -5000 Add Decrease in stock 10000 Cash flow from operation 155000

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