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XYZ has cash flow from operating activities of $40,000. If accruals increased by $20,000, account receivables...

XYZ has cash flow from operating activities of $40,000. If accruals increased by $20,000, account receivables increased by $90,000, and deprecation expenses totaled of $15,000. What was the company net income?

a. $95,000

b. $120,000

c. -$75,000

d. -$100,000

Solutions

Expert Solution

Cash flow from operating activities = Net income + Accruals increased - Account receivables increased + Deprecation expenses

$40,000 = Net income + $20,000 - $90,000 + $15,000

$40,000 = Net income - $55,000

Net income = $40,000 + $55,000

Net income = $95,000

jeff jeffy answered 2 years ago
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