Question

Using the following information, compute Net Cash Flow from Operating Activities. Note that some of the numbers in this problem are the same as those in the previous problem. Some, however, are different. You must answer this problem separately.

Balance Sheets for the Years Ending Dec. 31, 2011 and 2012
		2011		2012
Cash		300		400
Accounts receivable		1,000		1,400
Inventories		3,200		3,000
Current assets		4,500		4,800
Net fixed assets		3,800		4,300
Total assets		8,300		9,100
Notes payable		400		300
Accounts payable		700		500
Accruals		50		80
Current portion of long-term debt		70		80
Current liabilities		1,220		960
Long-term debt		4,300		4,900
Common stock ($.20 par)		1,200		1,300
Additional paid-in capital		680		740
Retained earnings		900		1,200
Total liabilities and equity		8,300		9,100

Net income (as reported on the 2012 Income statement) = 800

Depreciation (as reported on the 2012 Income statement) = 186

Net Cash Flow from Operating Activities = __________

INPUT YOUR ANSWER WITHOUT A DOLLAR SIGN AND WITHOUT ANY COMMAS. IF YOU MEAN FOR YOUR ANSWER TO INDICATE A CASH INFLOW, ENTER THE ANSWER ONLY (for example, enter a cash inflow of id="mce_marker",000 as 1000). IF YOU MEAN FOR YOUR ANSWER TO INDICATE A CASH OUTFLOW, PUT A NEGATIVE SIGN BEFORE YOUR ANSWER - DO NOT ENTER A SPACE BETWEEN THE NEGATIVE SIGN AND THE NUMBER (for example, enter a cash outflow of id="mce_marker",200 as -1200)

Answer 1

Solution:

Calculation of Net Cash Flow from Operating Activities:

	Amount
Net Income	800
Add:Depreciation	186
cash before change in working capital	614
Less:Increase in current assets(Except cash)and decrease in current liablities
a)Increase in Accounts receivable(1400-1000)	(400)
b)Decrease in Notes payable	(100)
c)Decrease in Accounts payable	(200)
Add:Decrease in current assets(Except cash)and Increase in current liablities
a)Decrease in inventories	200
b)Increase in Accruals	30
c)Increase in Current portion of long-term debt	10
Cash flow from operating activities	154