Refer to the financial statements of Flathead Lake Manufacturing Company. The fi

Question

Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's cash flow from operating activities for 2012 was _______.

$749,000

$719,000

$744,000

$618,000

Note: The common shares are trading in the stock market for $20 per share The financial statements of Flathead Lake Manufacturing Company are shown below: Flathead Lake Manufacturing Income Statement 2012 Sales Cost of Goods Sold Depreciation Expense $10,200,000 5,840,000 586,000 Gross Profit Selling and Administrative Expenses $ 3,774,000 3,100,000 EBIT Interest Expense $ 674,000 290,000 Income before Tax Taxes $ 384,000 251,000 Net Income $133,000

Explanation / Answer

Answer

$744,000

Working

Flathead Lake Manufacturing Company Statement of Cash Flows - Partial Cash flows from operating activities Net income $133,000 Adjustments for: Depreciation and amortization $586,000 586,000 Decrease in Accounts receivable 42,000 Increase in inventories -72,000 Increase in Accounts payable   55,000 25,000 Cash generated from operations 744,000

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