8. Given the following selected information on Cicalese’s Chocolate Inc., calculate the cash flow from operating activities for the year 20X1, Dec 31, 20X0 Dec 31, 20X1 EAT: $600,000 $750,000 Depre Expe: $100,000 $120,000 Dividends: $400,000 $500,000 Acc. Receiv: $1,500,000 $2,000,000 Inventory: $3,500,000 2,000,000 Acc. Payable: $350,000 $500,000 Long-Term Debt: $2,300,000 $3,000,000 Co. Stock: $2,200,000 $2,500,000 Retained Earn: $6,150,000 Solution Cash flows from operating activities Net income 7,50,000 Adjustments for: Depreciation and amortization 1,20,000 Increase in trade receivables (2000000 - 1500000) - 5,00,000 Decrease in inventories (3500000 - 2000000) 15,00,000 Increase in trade payables (500000 - 350000) 1,50,000 12,70,000 Cash generated from operations 20,20,000.

1. 8. Given the following selected information on Cicalese’s Chocolate Inc., calculate the cash flow
from operating activities for the year 20X1, Dec 31, 20X0 Dec 31, 20X1 EAT: $600,000
$750,000 Depre Expe: $100,000 $120,000 Dividends: $400,000 $500,000 Acc. Receiv:
$1,500,000 $2,000,000 Inventory: $3,500,000 2,000,000 Acc. Payable: $350,000 $500,000
Long-Term Debt: $2,300,000 $3,000,000 Co. Stock: $2,200,000 $2,500,000 Retained Earn:
$6,150,000
Solution
Cash flows from operating activities Net income 7,50,000 Adjustments for:
Depreciation and amortization 1,20,000 Increase in trade receivables (2000000 - 1500000) -
5,00,000 Decrease in inventories (3500000 - 2000000) 15,00,000 Increase in trade payables
(500000 - 350000) 1,50,000 12,70,000 Cash generated from operations 20,20,000