Cash flow from operating activities
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Suppose net income is forecasted to be $1,188 for the coming year, depreciation expense is forecasted to be $1,957, and dividends are expected to be $451. The balances in accounts receivable, inventories, accounts payable, and gross property, plant, and equipment are expected to be $279, $4,889, $2,209, and $26,111, respectively. At the end of the most recent fiscal year, the balances in these accounts were $201, $4,111, $1,906, and $19,169, respectively. Based on this information, calculate cash flow from operating activities for the coming year.
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The solution calculates cash flow from operating activities for the coming year.
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