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Innovative Products reported net income of $217,000. Beginning and ending inventory balances were $46,500 and $48,500, respectively. Accounts Payable balances at the beginning and end of the year were $41,000 and $38,000, respectively. Assuming that all relevant information has been presented, the company would report net operating cash flows of:

Respuesta :

The Net operating cash flow of Innovative Products company would be $218,000 after taking into consideration all the required events.

What do you mean by Operating cashflows?

Operating cash flow (OCF) is a degree of the quantity of cash generated via way of means of an agency's ordinary commercial enterprise operations.

As per the info:

[tex]\rm\,Net\, Operating \, Cashflows = Net\, Profit + Decrease\, in \, Current \, Liabilities - Increase\, in \, Current \, Assets \\\\Net\, Operating \, Cashflows = \$217,000 + (\$41,000 - \$38,000) - (\$48,500 - \$46,500)\\\\Net\, Operating \, Cashflows = \$217,000 + \$3,000 - \$2,000\\Net\, Operating \, Cashflows = \$218,000[/tex]

Hence, the Innovative Products company would report a net operating cash flow of $218,000.

Learn more about  net operating cash flow here:

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