FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**Educational Content for Website**

### Understanding Cash Flows from Operating Activities

Accounts receivable arising from sales to customers amounted to $30,000 and $10,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $185,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is:

- $169,000
- $185,000
- $220,000
- $201,000

You can select your answer from the options provided:

- \( \text{O} \) $169,000
- \( \text{O} \) $185,000
- \( \text{O} \) $220,000
- \( \text{O} \) $201,000

There is an option to save your answer for later:
- \( \text{Save for Later} \)

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This is an exercise aimed at understanding how changes in accounts receivable and reported income affect the calculation of cash flows from operating activities in financial statements. This concept is crucial for evaluating a company's liquidity and operational efficiency.

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Transcribed Image Text:**Educational Content for Website** ### Understanding Cash Flows from Operating Activities Accounts receivable arising from sales to customers amounted to $30,000 and $10,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $185,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is: - $169,000 - $185,000 - $220,000 - $201,000 You can select your answer from the options provided: - \( \text{O} \) $169,000 - \( \text{O} \) $185,000 - \( \text{O} \) $220,000 - \( \text{O} \) $201,000 There is an option to save your answer for later: - \( \text{Save for Later} \) You can attempt this question 0 out of 1 times. To submit your answer, click: - \( \text{Submit Answer} \) --- This is an exercise aimed at understanding how changes in accounts receivable and reported income affect the calculation of cash flows from operating activities in financial statements. This concept is crucial for evaluating a company's liquidity and operational efficiency. ![Submit Answer]
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