https//webcourses.ucf.edu/courses/1280620/quizzes/1687282 5/5 pts Question 16 As

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https//webcourses.ucf.edu/courses/1280620/quizzes/1687282 5/5 pts Question 16 Assume the following forecast for 20x2 Receivables 20x1-10,000 Receivables forecast 20x2-12,000 Inventory 20x1-20.000 Inventory forecast 20x2 . 22.000 Payable/accruals 20x1-15,000 Payables/accruals 20x2-25,000 For 20x2, the company forecasts net income of $50.000 and depreciation and amortization of $15,000 What is the forecasted cash flow generated by operations in 20x2 Hint: See Class 7 lecture slides for an illustration of how changes in working capital impact cash flow from operations 65,000 $71.000 59.000 74,000

Explanation / Answer

Statement of Cash Flow From Operations Particulars Amount Total Amount Net Income                50,000.00 Add: Depreciation and amortization                15,000.00 Less: Increase in Receivables                (2,000.00) Less: Increase in inventory                (2,000.00) Add:Increase in Payables                10,000.00 Cash flow from operating activities             71,000.00 So correct answer is $71000

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