Question

You are provided the following information about Clarke Inc. (Clarke) for 2018:
Net income .................. $ 437,500
Accounts receivable on January 1, 2018 ....... 1,375,000
Accounts receivable on December 31, 2018...... 1,562,500
Inventory on January 1, 2018........... 1,750,000
Inventory on December 31, 2018.......... 1,525,000
Accounts payable on January 1, 2018 ........ 1,187,500
Accounts payable on December 31, 2018 ....... 1,437,500
Depreciation expense .............. 262,500

Required:
Calculate cash from operations for Clarke for 2018. Provide a brief explanation for the difference between net income and cash from operations.



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  • CreatedFebruary 26, 2015
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