Question

The wexler corp. had the following for the past fiscal year : net income $17,000, ebit $32,000, taxes $6,000, changes in working capital $7,000 increase, depreciation $11,000. what is wexler corporation's cash flow to investors from operating activity ? a. $35,000 b. $21,000 c. $37,000 d. $27,000

Answer 1

The cash flow to investors from operating activity for Wexler Corporation is calculated by starting with net income, adding back depreciation, and subtracting the increase in working capital, which totals $21,000.

Step-by-step explanation:

The question is asking to calculate Wexler Corporation's cash flow to investors from operating activity for the past fiscal year. To do this, we start with the net income and adjust for non-cash expenses and changes in working capital. Therefore, the calculation would be:

Net Income: $17,000
+ Depreciation: $11,000
- Increase in Working Capital: $7,000
= Cash Flow to Investors from Operating Activity: $21,000

Hence, the correct answer is b. $21,000.