Rachel's Recordings reported net income of $200,000. Beginning balances in Accounts Receivable and Accounts Payable were $15,000 and $20,000, respectively. Ending balances in these accounts were $12,000 and $22,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be _______.

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RenatoMattice RenatoMattice · Answer 1 · 2019-07-19T13:22:20+02:00

Answer: The cash flow from operating activities is $205,000

Explanation:

Given :

Net income = $200,000

Increase in Accounts Payable = ( Ending balance - Beginning Balance) = $22000 - $20,000 = $2000

Decrease in Accounts Receivable = ( Ending balance - Beginning Balance) = $12,000 - $15,000 = $3000

Cash flow from operating activities = Net income + Increase in Accounts Payable + Decrease in Accounts Receivable = $205,000

nizhalspark nizhalspark · Answer 2 · 2021-08-08T18:50:14+02:00

Answer:

Rachel's net cash flows from operating activities would be [tex]$\$ 2,05,000$[/tex]

Explanation:

Rachel's net cash flows from operating activities would be:-

Add: Decrease in the Accounts Receivables [tex]$(\$ .15,000-\$ .12,000)=3,000[/tex]

[Decrease in the asset]

Add: Increase in the Accounts Payables [tex]$(\$ .22,000-\$ .20,000)=2,000[/tex]

[ Increase in the liability]

Therefore, the answer is [tex]$\$2,05,000$[/tex]

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