A company\'s income statement showed the following: net income, $130,300; deprec

Question

A company's income statement showed the following: net income, $130,300; depreciation expense, $31,500, and gain on sale of plant assets, $14,750. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,900; merchandise inventory increased $19,000; prepaid expenses decreased $6,700; accounts payable increased $3,700. Calculate the net cash provided or used by operating activities.

A company's income statement showed the following: net income, $130,300; depreciation expense, $31,500, and gain on sale of plant assets, $14,750. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,900; merchandise inventory increased $19,000; prepaid expenses decreased $6,700; accounts payable increased $3,700. Calculate the net cash provided or used by operating activities.

Explanation / Answer

Hi,

Please find the answer as follows:

Net cash provided or used by operating activities = 130300 + 31500 - 14750 + 9900 - 19000 + 6700 + 3700 = 148350

Option D is correct.

Thanks.

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