Reference no: EM132608383

Question - Company A had the following income statement amounts in 2019:

Sales: $1,000,000

Gross profit: $650,000

Depreciation: $50,000

Gain on sale of land: $10,000

Net income: $250,000

It also had the following current account balances at year-end in 2018 and 2019.

Account Name 12/31/18 12/31/19

Inventory 100,000 150,000

Accounts Receivable 150,000 100,000

Accounts Payable 300,000 350,000

Salaries Payable 20,000 30,000

Interest Payable 100,000 20,000

What were Company A's cash flows from operations?

a. $270,000

b. $190,000

c. $230,000

d. $310,000