Question

Student: DatesC Course: ACCT2402 hy3, MW 1100, Exercises Assignment: Chapter 16 Class Spring 2015 Book: Nobles/Mattison/Matsumura: Homgren's Accounting. 10e Felix Company following income statement uses the indirect method to prepare the statement of cash flows. Refer to the Felix Copany Income Statenet Year Ended December 31, 201s Sales Revense Interest Revemse Gain on Sale of Plant Assets Total revenues and gains Cost of Goods Sold Salary Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses Net Incone (loss) 5245,000 2,000 $252,000 118,000 43,000 13,000 25,000 1.500 5.500 S16,000 Additional information provided by the company includes the following 1) Current assets, other than cash, increased by $24,000 2) Current liabilinies decreased by $1,000 How much is the net cash provided by operating activities? OA. $34,000 OB. $39,000 Oc. $21,000 OD $29,000 Pape 1

Answer 1

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Cash flow from operating activities result in a cash changes only from operating activities:

Answer is highlighted in yellow: Solution: Answer: C. $21,000 Explanation: 46,000 Net Income Adjustment: Increase in Current Assets Decrease in Current liabilities Cash provided by operating activties $-24,000 $1,000 $-25,000 S 21,000