Net Income for the Year Was $45,500

question 189

Multiple Choice

Net income for the year was $45,500. Accounts receivable increased $5,500, and accounts payable increased by $11,200. Under the indirect method, the cash flow from operations is

• A) $51,200
• B) $45,500
• C) $62,200
• D) $28,800

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company manages credit extended to its customers by calculating the number of times receivables are collected during a period.