What is Regency’s 2012 cash flow from operating activities? A) $7.4 m

What is Regency’s 2012 cash flow from operating activities?

A) $7.4 million
B) $6.1 million
C) $9.4 million
D) $9.7 million

ANSWER

C
Explanation: C) Operating CF = NI + Depreciation -increase in A/R, – increase in Inventory + increase in A/P = $10.6 + $3.6 – ($55.5 – $39.6 ) – ($45.9 – $42.9 ) + ($87.6 – $73.5 ) = $9.4 million.