MC Qu. 119 Wessen Company reports net income of $200,00... Wessen Company report
ID: 2371625 • Letter: M
Question
MC Qu. 119 Wessen Company reports net income of $200,00...
Wessen Company reports net income of $200,000 for the year ended December 31, 2010. It also reports $40,000 depreciation expense, $22,500 amortization expense and a $15,000 loss on the sale of machinery. Its comparative balance sheets reveal a $225,700 increase in accounts receivable, $31,600 decrease in accounts payable, $15,000 decrease in prepaid expenses, and $48,100 decrease in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?
($57,900) ($12,900) $57,900 ($50,400) $50,400Explanation / Answer
Hi,
Please find the answer as follows:
Net cash flows provided (used) by operating activities = 200000 + 40000+ 22500 + 15000 - 225700 - 31600 + 15000 - 48100 = -12900
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