Question

Below is the Income Statement for Lopez Company for the year-ending December 31, 2017:

Sales (net)		$500,000
Cost of Goods Sold:
Beginning Inventory	$50,000
Net Purchases	300,000
Goods Available for Sale	350,000
Ending Inventory	40,000
Cost of Goods Sold		310,000
Gross Profit		$190,000
Expenses:
Wages	$35,000
Depreciation	30,000
Advertising	15,000
Administrative	5,000	$85,000
Income from Operations		$105,000
Gain on Sale of Equipment		50,000
Net Income		$155,000

The following balances were derived from the balance sheet:

	December 31	December 31
	2017	2016
Accounts Receivable	$100,000	$90,000
Accounts Payable	30,000	50,000
Prepaid Advertising Expense	5,000	3,000
Wages Payable	5,000	4,000
Inventory	40,000	50,000

Calculate Total Cash Flow from Operations at December 31, 2017:

Group of answer choices

$154,000

$114,000

$156,000

$134,000

$104,000

Answer 1

	total cash flow from operations
	net income				155,000
	Adjustments
	depreciation				30,000
	Gain on sale of equipment				-50,000
	increase in accounts receivable				-10,000
	decrease in accounts payable				20,000
	increase in prepaid advertising expense				-2,000
	increase in wages payable				1,000
	decrease in inventory				10,000
	total cash flow from operations				154,000
	answer)	154,000