Ask Question
11 June, 14:04

Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain on the sale of land of $1.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.3 million, $3.3 million, and $4.3 million, respectively. What are Engineering Wonders' net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i. e., $10,000,000 should be entered as 10).)

+4
Answers (1)
  1. 11 June, 14:14
    0
    70.3

    Explanation:

    The calculation of net cash flows from operating activities is shown below:-

    Engineering Wonders reports

    Net cash flow from operating activities

    Particulars Amount

    Net income 63

    Adjustment to reconcile net

    income to net cash

    flow from operating activities

    Add: Depreciation expense 5.3

    Less: Gain on sale of land 1.3

    Add: Decrease in Accounts

    receivable 2.3

    Less: Decrease in accounts

    payable 3.3

    Add: Decrease in inventory 4.3

    Net cash flow from operating

    activities 70.3

    Therefore the net cash flow from operating activities is 70.3.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers