Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense.

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3.47K viewsOctober 8, 2016

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Darshita 6.14K October 8, 2016 0 Comments

Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of

$500,000. What was its net cash flow? Assume it had no amortization expense.

1 Answer

score 0 · Answer 1 · 2016-10-08T06:34:46+00:00

Answer : Net Cash Flow = $ 3.6 Million

Working Note for the above answer

Net Cash Flow means total Cash receoved during the year .Depreciation is not a cash expenses So it will be added Back in the net income to find out Net cash Flow

Net cash flow = Net income + Depreciation

Net cash flow = 3,100,000 + 500,000 = $3,600,000

Net cash flow = $3,600,000

Net cash flow = $3.6 Million

1 Answer

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