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20 September, 11:18

Hi-Tech, Inc., reports net income of $66.0 million. Included in that number are depreciation expense of $5.6 million and a loss on the sale of equipment of $1.6 million. Records reveal increases in accounts receivable, accounts payable, and inventory of $2.6 million, $3.6 million, and $4.6 million, respectively. What are Hi-Tech's net cash flows from operating activities? (List cash outflows and any decrease in cash as negative amounts. Round your answers to 1 decimal place. Enter your answers in millions (i. e., $10,100,000 should be entered as 10.1).)

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  1. 20 September, 13:08
    0
    Hi-Tech's net cash flows from operating activities is $69.6 million

    Explanation:

    Prepare the Cash Flow from Operating Activities Section Using the Indirect method as follows:

    Cash Flow from Operating Activities

    Net income $66.0 million

    Adjustment of Non-cash items:

    depreciation $5.6 million

    loss on the sale of equipment $1.6 million

    Adjustment of Working Capital Items:

    Increase in accounts receivable ($2.6 million)

    Increase in accounts payable $3.6 million

    Increase in accounts inventory ($4.6 million)

    Net Cash Flow from Operating Activities $69.6 million
  2. 20 September, 15:10
    0
    Net cash flows from operating activities$69.6

    Explanation:

    Hi-Tech, Inc

    Cash Flows from Operating Activities

    Net income $66

    Adjustments to reconcile net income to net cash flows from operating activities:

    Depreciation expense 5.6

    Loss (on sale of equipment) 1.6

    Increase in accounts receivable (2.6)

    Increase in inventory (4.6)

    Increase in accounts payable 3.6

    Net cash flows from operating activities$69.6

    Therefore Hi-Tech's net cash flows from operating activities will be $69.6
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Home » Business » Hi-Tech, Inc., reports net income of $66.0 million. Included in that number are depreciation expense of $5.6 million and a loss on the sale of equipment of $1.6 million.
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