A house painting business had revenues of $16,600 and expenses of $9,600. There
ID: 2714936 • Letter: A
Question
A house painting business had revenues of $16,600 and expenses of $9,600. There were no depreciation expenses and no taxes. However, the business reported the following changes in working capital: Beginning End Accounts receivable $1,800 $5,100 Accounts payable 820 360 Calculate net cash flow for the business for this period. A house painting business had revenues of $16,600 and expenses of $9,600. There were no depreciation expenses and no taxes. However, the business reported the following changes in working capital:Explanation / Answer
Computation of net cash flows
Particulars Amount($)
Net profit 7000
less: increase in accounts receivable (3300)
decrease in accounts payable (460)
Net cash flows 3240.