Sunset Acres reported net income of $53.5 million. Included in that number were

Question

Sunset Acres reported net income of $53.5 million. Included in that number were trademark amortization expense of $1.9 million and a gain on the sale of land of $3.2 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.9 million, $3.9 million, and $2.9 million, respectively. What were Sunset's cash flows from operating activities? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) (S in millions) Cash flows from operating activities Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities

Explanation / Answer

SOLUTION

($ in millions) ($ in millions) Cash Flows from Opertaing Activities- Net Income 53.50 Adjustments for non cash effects- Gain on sale of land (3.20) Changes in operating assets and liabilities- Decrease in Accounts Receivable 2.90   Decrease in Accounts Payable (3.90)   Decrease in Inventory 2.90 1.90 Net Cash flows from operating activities 52.20

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