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    Compute Cash Flow from Operating Activities

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    2001 2002
    Net Income $1200 $1500
    Depreciation $200 $300
    Total Current Assets $700 $900
    Total Current Liabilities $500 $800

    During 2002, the company made capital expenditures totaling $500 and disposed of property worth $400.

    What is the company's cash flow from operating activities for 2002?

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    Solution Preview

    * Some information is not correctly stated in this question. When calculating CF, of Current Asset accounts we usually need to know the change in A/R and Inventory, but not Cash account. However, only information of Total Current Assets is given, so I have to assume there's no change in ...

    Solution Summary

    The solution has been prepared, but there are several notes about inadequate information presented with the problem to complete a true cash flow from operating activities. Still, a solution was completed with the exceptions carefully noted.