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CTP · Question #691

(Topic 7) The year-end income statement and balance sheet accounts for a company as of December 31, Year 1 are shown in the Exhibit. If no changes occurred in the current asset and current liability…

The correct answer is D. $400,000. See the full explanation below for the reasoning.

Question

  • (Topic 7)

The year-end income statement and balance sheet accounts for a company as of December 31, Year 1 are shown in the Exhibit. If no changes occurred in the current asset and current liability account balances from the beginning of the period, except for cash, what was the net cash flow from operations for Year 1?

Options

  • A$350,000
  • B$365,000
  • C$390,000
  • D$400,000

How the community answered

(52 responses)
  • A
    10% (5)
  • B
    2% (1)
  • C
    6% (3)
  • D
    83% (43)

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