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A house painting business had revenues of $17,300 and expenses of $10,300. There

ID: 2713335 • Letter: A

Question

A house painting business had revenues of $17,300 and expenses of $10,300. There were no depreciation expenses and no taxes. However, the business reported the following changes in working capital:   Beginning    End   Accounts receivable $2,500     $5,800       Accounts payable 960     430     Calculate net cash flow for the business for this period. A house painting business had revenues of $17,300 and expenses of $10,300. There were no depreciation expenses and no taxes. However, the business reported the following changes in working capital:

Explanation / Answer

Statement showing computation of Cash Flows Particulars Amount Revenues          17,300.00 Expenses       (10,300.00) Less Increase in Account Receivable          (3,300.00) Less Decrease in Accounts Payable             (530.00) Net Cash Flows            3,170.00