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13 March, 18:56

Bruce Company reported net income for 2018 of S100,000. The company reported depreciation expense of $17,500 and amortization of $5,000. The company also reported a loss on the sale of equipment of $2,500. Based only on this information, the company would report cash flow from operating activities of Multiple Choice

A. $117,500.

B. $120,000

C. $127,500.

D. $125,000.

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  1. 13 March, 19:22
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    cash flow from operating activities = $125,000

    so correct option is D. $125,000

    Explanation:

    given data

    net income = S100,000

    depreciation expense = $17,500

    amortization = $5,000

    sale of equipment = $2,500

    to find out

    cash flow from operating activities

    solution

    we get here cash flow from operating activities that is express as

    cash flow from operating activities = Net income + Depreciation expense + Amortization expense + sale of equipment ... 1

    put here value we get

    cash flow from operating activities = $100,000 + $17,500 + $5,000 + $2,500

    cash flow from operating activities = $125,000

    so correct option is D. $125,000
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