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Khaled Co. reports SR 100000 net income for the year ended 2018, account receivables decreased by...

Khaled Co. reports SR 100000 net income for the year ended 2018, account receivables decreased by SR 7000, account payable decreased by SR 6000, and during the 2018 reported SR 10000 of depreciation expenses. What is Khaled CO. operating cash flow for 2018?

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Ans. Particulars Amount
Cash flow from operating activities:
Net income SR 100000
Adjustments to reconcile Net income to operating cash flow
Income statement items not affecting cash
Add: Depreciation expenses SR 10000
Changes in current operating assets and liabilities:
Add: Decrease in accounts receivable SR 7000
Less: Decrease in accounts payable -SR 6000
Operating Cash Flow SR 111000
*EXPLANATIONS:
*Decrease in current liabilities and Increase in current assets other than cash are deducted from Net Income.
*Increase in current liabilities and Decrease in current assets other than cash are added to Net Income.
*Non cash & Non operating expenses are added to Net income.
*Non cash & Non operating income are deducted from Net income.

ekkarill92 answered 2 years ago
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