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Sagot :
The cash flow from operating activities is $2,65,500
Given :
Net income = $250,000
Increase in Accounts Payable = ( Ending balance - Beginning Balance) = $28000 - $21,000 = $7000
Decrease in Accounts Receivable = ( Ending balance - Beginning Balance) = $10,500 - $19,000 = $8500
Cash flow from operating activities = Net income + Increase in Accounts Payable + Decrease in Accounts Receivable = $2,65,500.
What Is Cash Flow?
The term cash flow refers to the net amount of cash and cash equivalents being transferred in and out of a company. Cash received represents inflows, while money spent represents outflows. A company’s ability to create value for shareholders is fundamentally determined by its ability to generate positive cash flows or, more specifically, to maximize long-term free cash flow (FCF).
FCF is the cash generated by a company from its normal business operations after subtracting any money spent on capital expenditures.
Learn more about Cash Flow on:
brainly.com/question/24179665
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