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Compute the company cash flow from operating activities

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Reference no: EM132109833

Question - Let's Do This, Inc. had an operating income of $35,000 for the year just ended. Balances in the company's current asset and current liability accounts at the beginning and of the year were as follows:

Beginning

Ending

Cash

$30,000

$40,000

Accounts Receivable

$125,000

$106,000

Inventory

$213,000

$180,000

Accounts Payable

$210,000

$195,000

The company reported $350,000 in Sales Revenue and a Gross Profit of $140,000. Depreciation expense totaled $8,000. Using the direct method, compute the company's cash flow from operating activities for the year. (Assume only inventory purchases are included in accounts payable)

A. $80,000

B. $87,000

C. $125,000

D. $51,000

E. $177,000

Reference no: EM132109833

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