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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?

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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

ekkarill92 answered 2 years ago
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