Question

Williamsburg Market is an all-equity firm that has net income of $96,200, depreciation expense of $6,300, and an increase in net working capital of $2,800. What is the amount of the net cash from operating activity?a. $91,300b. $99,700c. $93,400d. $105,300e. $113,700

Answer 1

Answer:

Option (b) is correct.

Explanation:

Given that,

Net income = $96,200

Depreciation expense = $6,300

Increase in net working capital = $2,800

Net cash from operating activity:

= Net income + Depreciation expense - Increase in net working capital

= $96,200 + $6,300 - $2,800

= $99,700

Therefore, the amount of the net cash from operating activity is $99,700.