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11 April, 12:07

Kela Corporation reports a net income of $450,000 that includes a depreciation expense of $70,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, the total cash inflows from operating activities are:

a. $380,000.

b. $470,000.

c. $520,000.

d. $570,000.

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  1. 11 April, 13:26
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    option (c) $520,000

    Explanation:

    Data provided in the question:

    Net income = $450,000

    Depreciation expense = $70,000

    Amount borrowed = $50,000

    Now,

    Here out of the given transactions, the amount borrowed is a financing activity.

    Therefore,

    The total cash inflows from operating activities

    = Net income + Depreciation expense

    = $450,000 + $70,000

    = $520,000

    Hence,

    The correct answer is option (c) $520,000
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