Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain on the sale of land of $1.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.3 million, $3.3 million, and $4.3 million, respectively. What are Engineering Wonders' net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i. e., $10,000,000 should be entered as 10).)

Question

Business

Terry Faulkner

7 March, 06:17

Engineering Wonders reports net income of $63 million. Included in that number is building depreciation expense of $5.3 million and a gain on the sale of land of $1.3 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $2.3 million, $3.3 million, and $4.3 million, respectively. What are Engineering Wonders' net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i. e., $10,000,000 should be entered as 10).)

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Answers (1)

Know the Answer?

Harper Gonzales · Answer 1

70.3

Explanation:

The calculation of net cash flows from operating activities is shown below:-

Engineering Wonders reports

Net cash flow from operating activities

Particulars Amount

Net income 63

Adjustment to reconcile net

income to net cash

flow from operating activities

Add: Depreciation expense 5.3

Less: Gain on sale of land 1.3

Add: Decrease in Accounts

receivable 2.3

Less: Decrease in accounts

payable 3.3

Add: Decrease in inventory 4.3

Net cash flow from operating

activities 70.3

Therefore the net cash flow from operating activities is 70.3.