Lani's Generated Net Income of $911, Depreciation Expense Was $47

question 16

Multiple Choice

Lani's generated net income of $911, depreciation expense was $47, and dividends paid were $25. Accounts payables increased by $15, accounts receivables increased by $28, inventory decreased by $14, and net fixed assets decreased by $8. There was no interest expense. What was the net cash flow from operating activity?

• A) $776
• B) $865
• C) $959
• D) $922
• E) $985

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Definitions:

Per Annum

Annually or per year, often used to describe rates or amounts calculated over the span of a year.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed-term investment, including the principal and interest.

Per-annum Rate

Another term for annual rate, indicating the interest rate or growth rate over a single year.

Bank Loan

Money lent by a bank to a customer, usually with interest, that is expected to be repaid within a certain period.