If Cash Flow from Operations Is $938, Net Capital Spending

question 108

Multiple Choice

If cash flow from operations is $938, net capital spending is -$211, and net working capital declines by $73, what is cash flow from assets?

• A) $654
• B) $800
• C) $954
• D) $1,076
• E) $1,222

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Definitions:

Net Sales

The total revenue from sales after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable within a specified period, indicating the efficiency of credit and collections.

Total Sales

The aggregate revenue a company generates from selling its goods or services within a specific period.

Direct Write-off Method

A method of accounting for bad debts where specific uncollectible accounts receivable are directly written off against income at the time they are deemed to be uncollectible.