Saylor BUS105 Exam - Topic 6 Question 11 Discussion

Actual exam question for Saylor's BUS105 exam

Question #: 11
Topic #: 6

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 Kassandra at Nov 24, 2025, 10:55 AM

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Sherill

10 hours ago

Definitely A) $380,650, seems straightforward.

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Beata

6 days ago

Wait, how did they get to that number?

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Eleonora

11 days ago

I disagree, it has to be C) $553,350!

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Timothy

16 days ago

I think the answer is B) $493,550.

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Thersa

21 days ago

This question is making my head spin. I'm going to go with my gut and say A) $380,650. Gotta love those indirect method adjustments!

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Paulene

26 days ago

Haha, who needs cash flow statements when you can just stuff all your money under the mattress? But in all seriousness, I think B) $493,550 is the way to go here.

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Cristal

1 month ago

Hmm, I'm not sure. This cash flow stuff can get tricky. I'll have to double-check my work, but I'm leaning towards D) $545,350.

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Stefany

1 month ago

C) $553,350 seems right to me. The adjustments to net income, like the increase in accounts receivable and decrease in accounts payable, make sense for calculating cash from operations.

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Shawnda

1 month ago

I feel like the answer could be $545,350, but I’m not entirely sure how the changes in liabilities affect the cash flow. I hope I remember the adjustments correctly!

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Trina

2 months ago

I think I recall that we need to add back non-cash expenses and subtract any increases in current assets. I’m leaning towards option C, $553,350, but I’m not completely confident.

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Kami

2 months ago

This question feels similar to one we did in class where we had to adjust net income for non-cash expenses. I think the answer might be around $493,550, but I could be mixing it up.

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Carman

2 months ago

Okay, I've got this. I just need to identify the adjustments for non-cash items and changes in working capital, then add them to the net income. I'm confident I can get the right answer.

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Francesco

2 months ago

I remember we practiced converting net income to cash flow using the indirect method, but I’m not sure about the adjustments for depreciation and changes in working capital.

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Davida

2 months ago

I think the answer is B) $493,550. The cash flow statement is all about converting net income to cash provided by operating activities, and the data given looks like it would lead to that amount.

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Roy

3 months ago

The indirect method seems straightforward, but I want to double-check my work to make sure I don't miss anything. This is an important question, so I'll take my time.

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Delsie

3 months ago

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

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Marguerita

3 months ago

Hmm, I'm a bit unsure about how to properly convert the net income to cash provided by operating activities using the indirect method. I'll need to review my notes on that.

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Cora

3 months ago

I think I can work through this step-by-step, starting with the net income and adjusting for the changes in assets and liabilities.

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Willard

2 months ago

I agree, starting with net income is key.

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