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15 June, 10:08

Lense Laboratories' net income was $280,000. Given the account information below, what is the net operating cash flows for Lense Laboratories? Increase in Accounts Receivable $69,000 Increase in Salaries Payable $53,500 Decrease in Inventory $31,500 Depreciation Expense $46,500 Increase in Prepaid Insurance $3,900 $369,600 $484,400 $283,400 $338,600

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  1. 15 June, 12:38
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    Answer: Option (D) is correct.

    Explanation:

    Given that,

    Net income = $280,000

    Increase in Accounts Receivable = $69,000

    Increase in Salaries Payable = $53,500

    Decrease in Inventory = $31,500

    Depreciation Expense = $46,500

    Increase in Prepaid Insurance = $3,900

    Cash flow from operating activities:

    = Net income - Increase in Accounts Receivable + Increase in Salaries Payable + Decrease in Inventory + Depreciation Expense - Increase in Prepaid Insurance

    = $280,000 - $69,000 + $53,500 + $31,500 + $46,500 - $3,900

    = $338,600
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