Mary's Music Store Cash Flow Analysis

What is Mary's net cash flows from operating activities?

Based on the data provided, what would be Mary's net cash flows from operating activities?

Mary's net cash flows from operating activities:

135,400

Mary's Music Store reported a net income of $137,000. To calculate the net cash flows from operating activities, we need to adjust the net income for non-cash items and changes in current assets and liabilities.

Since there are no non-cash items listed in the problem, the net cash provided by operating activities for Mary's Music Store is $137,000.

Next, we need to adjust the net income for changes in current assets and liabilities. The Accounts Receivable had a beginning balance of $26,500 and an ending balance of $34,500, resulting in a change of $8,000 (increase). The Accounts Payable had a beginning balance of $18,500 and an ending balance of $13,400, resulting in a change of $5,100 (decrease).

By adding the net income with the changes in current assets and liabilities, we get: $137,000 + $8,000 - $5,100 = $135,400. Therefore, Mary's net cash flows from operating activities would be $135,400.