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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.

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    https://brainmass.com/business/working-capital-management/cash-flows-working-capital-problem-163464

    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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