Using the information below, calculate net cash flows from operating activities: net income $ 120,000 receive cash from issuing stock 80,000 pay cash for equipment 90,000 increase in accounts receivable 10,000 depreciation expense $ 30,000 increase in accounts payable 5,000 receive cash from sale of land 75,000 pay cash dividends 20,000

Net Cash Flow from Operating Activities is $145,000

Explanation:

Cash Flow from Operating Activities  

Net Income                                                 $120,000  

Adjustment for Non Cash Expenses  

Deprecation Expense                                 $30000

Working Capital Changes  

Increase in Accounts Receivables          $(10,000)

Increase in Accounts Payable                   $5000

Net Cash Flow from Operating Activities  $145,000  

Please note that:

*figures in brackets represent negative values or cash outflows

answer; i believe that the correct answer is client agreement;

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough