Saylor BUS105 Exam - Topic 5 Question 21 Discussion

Actual exam question for Saylor's BUS105 exam

Question #: 21
Topic #: 5

The accounting department for Aramai Inc. is preparing the cash flow statement for the current year. Using the select financial statement data below, what is Aramai's net income when converted to cash provided by operating activities, using the indirect method?

A$380,650

B$493,550

C$553,350

D$545,350

Show Suggested Answer

Suggested Answer: B

by Loren at Jun 30, 2026, 09:51 AM

Limited Time Offer

25%

Off

Get Premium BUS105 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Casie

I vaguely recall that we need to look at the changes in accounts receivable and inventory, but I’m a bit confused about how they affect the cash flow calculation.

upvoted 0 times

...

Adelina

5 days ago

I feel like the answer might be around $545,350, but I can't quite remember how to get there. Did we have to subtract any losses or add gains?

upvoted 0 times

...

Jani

10 days ago

I think we practiced a similar question where we had to add back depreciation and adjust for changes in working capital. I hope I can recall those adjustments correctly.

upvoted 0 times

...

Lacey

15 days ago

I remember the indirect method starts with net income and adjusts for non-cash items, but I'm not sure about the specific adjustments here.

upvoted 0 times

...