Question

Help Save & Ex A company's income statement showed the following net income, $133,000 depreciation expense, $39,500 and gain on sale of plant assets, $13,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,300; merchandise inventory increased $27.500, prepaid expenses increased $8,100; accounts payable increased $5300 Calculate the net cash provided or used by operating activities Multiple Choice $154 200 $140 000 $161,000 $156,200 $182 200. < Prev 32 of 36 Next > SAMSUNG O to search

Answer 1

Lets build Cash flow using Indirect Method $ 133000 Net Income (+) Accounts receivable decreased $ 11,300 e Merchandise Anwentory $ (27,500) increased - Prepaid Eupense $ ( 8100) Increased (+) Accounts Payable Increased 5300 114,000 on sale of Asset, Now we will add depreciation and subtract gain on sale (+) Depucciation Asset of so, cash presided by El Gain on sale $ 39500 $_C13500) $ 140,000 operating Activities 140,000,