The following information is extracted from a financial statement: Net income $1000 Decrease m accounts receivable 120 Increase In inventory 40 Increase in accounts payable 20 Decrease in wages payable10 Increase in deferred taxes40 Depreciation 100 Profit from the sale of fixed assets 10 Dividends paid out80 Cash flow from operations is:
A．
| A. $ 940. |
B．
| B. $ 1020. |
C．
| C. $ 860. |
参考答案：A
解析：Net income 1000 Adjustment for non-cash and non-operating items Depreciation 100 Deferred taxes (increase) 40 Profit from sale of equipment (10) Adjustment for working capital items: Accounts receivable (decrease) (120) Inventory (increase) (40) Accounts payable (increase) (20) Wages payable (decrease) (10) Cash flow from operations 940