Question
In: Accounting
KASE has an accrual basis net income of $189,000 and the following related items: Amortization expense...
KASE has an accrual basis net income of $189,000 and the following related items:
|
Amortization expense |
$68,000 |
|
Accounts receivable increase |
24,000 |
|
Inventory increase |
17,000 |
|
Interest payable decrease |
8,000 |
|
Dividends paid |
10,000 |
What is KASE’s net cash flow from operating activities?
Solutions
Expert Solution
| Statement of cash flow (Partial) | ||
| Cash flow from operating activities | ||
| Net Income | 189,000 | |
| Adjustment to reconcile the net income to cash flow from operating activities | ||
| Add:Amortization expenses | 68,000 | |
| Less: Increase in Accounts receivables | (24,000) | |
| Less: Increase in Inventory | (17,000) | |
| Less: Decrease in Interest payable | (8,000) | 19,000 |
| Net cash provided by operating activities | 208,000 | |
| Hence, the KASE’s net cash flow from operating activities will be $208,000 |
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PLEASE IN YOUR OWN WORDS.
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