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The following information should be used to according to the provisions of GAAP (Statement of Cash Flows) and using the following data. Net income $50,000 Provision for bad debts $2,000 Decrease in inventory $1,000 Decrease in accounts payable $2,000 Purchase of new equipment $35,000 Sale of equipment for $10,000 loss $20,000 Depreciation expense $6,000 Repurchase of common stock $13,000 Payment of dividend $4,000 Interest payment $3,000 What is net cash flow from operations

Respuesta :

goldencat2907

Answer:

                   

Explanation:

anthougo

The net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.

What is the net cash flow from operations?

The net cash flow from operations shows the ability of a firm to generate cash from its core business activities.

The net cash flow from operations is computed as the net income from the income statement and adjustments to modify net income from an accrual accounting basis to a cash accounting basis.

Data and Calculations:

Net income                                  $50,000

Non-Cash Expenses:

Loss from sale of equipment     $20,000

Provision for bad debts                $2,000

Depreciation expense                 $6,000

Changes in working capital:

Decrease in inventory                 $1,000

Decrease in accounts payable ($2,000)

Cash from operations             $77,000

Thus, the net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.

Learn more about cash from operations at https://brainly.com/question/24179665

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