Question - Let's Do This, Inc. had an operating income of $35,000 for the year just ended. Balances in the company's current asset and current liability accounts at the beginning and of the year were as follows:
|
Beginning
|
Ending
|
|
Cash
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$30,000
|
$40,000
|
|
Accounts Receivable
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$125,000
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$106,000
|
|
Inventory
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$213,000
|
$180,000
|
|
Accounts Payable
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$210,000
|
$195,000
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The company reported $350,000 in Sales Revenue and a Gross Profit of $140,000. Depreciation expense totaled $8,000. Using the direct method, compute the company's cash flow from operating activities for the year. (Assume only inventory purchases are included in accounts payable)
A. $80,000
B. $87,000
C. $125,000
D. $51,000
E. $177,000