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

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Lonny

11 hours ago

I think it's B) $493,550. Looks right to me.

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Charlena

6 days ago

Same here! Confidence is key.

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Laurel

11 days ago

I just hope I don’t overthink it.

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Lillian

16 days ago

True, but I trust my calculations.

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Charlie

21 days ago

The indirect method can be tricky.

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Charlena

26 days ago

D) $545,350 could be right. Adjustments look solid.

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Laurel

1 month ago

I feel like A) $380,650 is too low.

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Lillian

1 month ago

I’m leaning towards C) $553,350. The adjustments add up.

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Charlie

1 month ago

I think it's B) $493,550. Seems reasonable.

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Glory

2 months ago

A) $380,650 is way too low for a cash flow statement!

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Latanya

2 months ago

Wait, are we sure about these numbers? Seems off to me.

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Nobuko

2 months ago

Just a heads up, the indirect method can be tricky!

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Whitley

2 months ago

I disagree, I’m leaning towards C) $553,350.

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Junita

2 months ago

I think it's B) $493,550. Looks right based on the data.

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Casie

2 months ago

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.

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Adelina

3 months 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?

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Jani

3 months 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.

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Lacey

3 months 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.

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