Question

Baird Company reported depreciation expense of $22,400 and net income of $37,800 on its Year 1 income statement. During Year 1, the company's accounts receivable balance decreased by $9,700. Based on this information alone, what was the amount of cash flow from operating activities?

Answer 1

Answer:

$69,900

Explanation:

Data provided

Net income = $37,800

Depreciation expense = $22,400

Decrease account receivable = $9,700

The calculation of Cash flow from operating activities is given below:-

Cash flow from operating activities = Net income + Depreciation expense + Decrease account receivable

= $37,800 + $22,400 + $9,700

= $69,900

So, for calculating the cash flow from operating activities we simply applied the above formula.