Question

1112.Lense Laboratories' net income was $320,000. Given the account information below, what is the net cash...

1112.Lense Laboratories' net income was $320,000. Given the account information below, what is the net cash flows from operating activities for Lense Laboratories?

Increase in Accounts Receivable $ 64,000
Increase in Salaries Payable $ 54,500
Decrease in Inventory $ 35,500
Depreciation Expense $ 48,500
Increase in Prepaid Insurance $ 3,900

Multiple Choice

  • A.$327,400

  • B.$409,600

  • C.$390,600

  • D.$526,400

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Answer #1

Answer- The correct option is-c.$390,600

Statement of Cash Flow
Particulars Amount Total Amount
Net Income              320,000.00
Depreciation Expense               48,500.00
Increase in AR              (64,000.00)
Decrease in Inventory               35,500.00
Increase in Salaries Payable               54,500.00
Increase in prepaid Insurance               (3,900.00)
Cash flow from operating activities         390,600.00
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