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24 February, 02:16

Innovative Products reported net income of $205,000. Beginning and ending inventory balances were $40,000 and $45,000, respectively. Accounts payable balances at the beginning and end of the year were $35,000 and $33,000, respectively. Assuming that all relevant information has been presented, the company would report net operating cash flows of:A. $202,000B. $198,000C. $212,000D. $205,000

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  1. 24 February, 04:07
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    = $198,000

    Explanation:

    A Cash flow statement records the movement of cash asset in an organization. It monitors the inflows and outflow of money in a financial year.

    For innovative products:

    Cash from net income: $ 205,000.00

    Increase in inventory

    ($45,000-$40,000) $5,000.00

    Accounts payables

    ($33,000-$35,000) ($2, 000.00)

    Net operating cash flow = $205,000-$5000 - $2000

    = $198,000
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