Respuesta :
The operating cash flows at the end of Year 1 were $1,053,880.
Why Is Operating Cash Flow Important?
Running coins waft is an important benchmark to determine the economic achievement of a company's center commercial enterprise sports as it measures the number of coins generated with the aid of an organization's regular enterprise operations. Operating cash waft shows whether an organization can generate sufficient fine coins glide to hold and develop its operations, otherwise, it can require outside financing for capital growth.
How Do You Calculate Operating Cash Flow?
the use of the oblique approach, internet profits are adjusted to a cash basis using changes in non-coin money owed, along with depreciation, bills receivable, and money owed payable (AP). due to the fact maximum corporations file the net earnings on an accrual basis, it consists of various non-coins gadgets, which include depreciation and amortization. working cash flow = running earnings + Depreciation – Taxes + trade-in operating Capital.
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