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# Cash Flows and Working Capital

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A house painting business had revenues of \$16,000 and expenses of \$9,000. There were no depreciation expenses. However, the business reported the following changes in working capital.

Beginning End
Accounts receivable \$1,200 \$4,500
Accounts payable 700 300

Calculate net cash flow for the business for this period.

#### Solution Preview

Problem: A house painting business had revenues of \$16,000 and expenses of \$9,000. There were no depreciation expenses. However, the business reported the following changes in working capital.

Beginning End
Accounts receivable \$1,200 \$4,500
Accounts payable 700 300

Calculate net cash flow for the business for this period.

Solution:
Net working ...

#### Solution Summary

This posting gives a detailed, step-by-step solution to the problem about cash flows and working capital. Step by step calculations are provided in the solution.

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