FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hampton Industries had $44,000 in cash at year-end 2020 and $27,000 in cash at year-end 2021. The firm invested in property, plant, and equipment totaling $170,000 - the
majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$150,000. Round your answers
to the nearest dollar, if necessary.
a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign.
b. If accruals increased by $50,000, receivables and inventories increased by $125,000, and depreciation and amortization totaled $73,000, what was the firm's net income?
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Transcribed Image Text:Hampton Industries had $44,000 in cash at year-end 2020 and $27,000 in cash at year-end 2021. The firm invested in property, plant, and equipment totaling $170,000 - the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$150,000. Round your answers to the nearest dollar, if necessary. a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. b. If accruals increased by $50,000, receivables and inventories increased by $125,000, and depreciation and amortization totaled $73,000, what was the firm's net income?
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