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Alpha's Company's Fiscal Year 2017 Statement of Cash Flows reflected information that cash...

Question:

Alpha's Company's Fiscal Year 2017 Statement of Cash Flows reflected information that cash provided by operating activities was $800,000. The following additional information was provided:

Depreciation Expense $380,000

Common Stock Dividends $200,000

Accounts Receivable decrease $110,000

Accounts Payable increase $60,000

Use this information and determine Alpha Company's the Net Income (Net Loss) the 2017 Fiscal Year.

What Is Operating Cash Flow:

A company's Operating Cash Flow is presented at the top of the cash flow statement as per GAAP. The Operating Cash Flow is the cash that is used/generated by the company's core operations (i.e. income) as well as by changes to its working capital.

Answer and Explanation:

See the formula and calculation below.

Net income = Cash provided by operating activities - depreciation expense - Accounts Receivable decrease - Accounts Payable increase

=800,000 - 380,000 - 110,000 - 60,000

=$250,000

The answer is thus $250,000.


Learn more about this topic:

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Operating Cash Flow: Definition & Examples

from Finance 101: Principles of Finance

Chapter 10 / Lesson 4
10K

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