Question

Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Net income reported on the income statement for the year was $457,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Answer 1

Answer:

Cash flow from operating activities $472,000

Explanation:

The computation of the cash flows from operating activities to be reported on the statement of cash flows is given below:

Beginning account receivable $120,000

Add: net income $457,000

less: ending account receivable -$105,000

Cash flow from operating activities $472,000