The following data about Atlantis Trading Inc. is available. What is Atlantis’s cash flow from operating activities? Items Amount ($)
Net income
45,000
Increase in stock
5,000
Decrease in accounts receivables
2,000
Increase in salaries payable
10,000

A.
$54,000

B.
$51,000
C.
$53,000
D.
$52,000

The correct option is D. $52,000.

Explanation:

Atlantis’s cash flow from operating activities can be calculated as follows:

Atlantis Trading Inc.

Calculation of Cash Flow from Operating Activities

Items                                                                Amount ($)      

Net income                                                          45,000

Adjustment to reconcile net income

(Increase) decrease in current assets:

Increase in stock                                                 (5,000)

Decrease in accounts receivables                      2,000

Increase (decrease) in current liabilities:

Increase in salaries payable                               10,000  

Cash flow from operating activities               (52,000)  

The above implies that:

Cash flow from operating activities = Net income - Increase in stock + Decrease in accounts receivables + Increase in salaries payable = $45,000 - $5,000 + $2,000 + $10,000 = $52,000

Therefore, the correct option is D. $52,000.

what are the sentences? so we can answer the question.

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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