Bamboo Co

Accounting Aug 16, 2020

Bamboo Co. Limited had a profit after tax of $75 000 for the financial year. Included in this profit was: i) depreciation expense of $22 000; and ii) gain on sale of investments of $6 000. Also, accounts receivable increased by $26 000 and inventories decreased by $8 000. The cash flow from operating activities during the year was:

Select one:

a. $73 000

b. $82 000

c. $78 000

d. $48 000

Expert Solution

Operating activities= Profit after tax+ Depreciation expenses+ Decreased inventory- Increased account receivable- Gain on sale of inv.

= $75 000+ $22 000+ $8 000- $26 000- $6 000

= $73000

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