A company had net income of $210200. Depreciation expense is $27500. During the

Question

A company had net income of $210200. Depreciation expense is $27500. During the year, Accounts Receivable and Inventory increased $17300 and $41600, respectively. Prepaid Expenses and Accounts Payable decreased $4900 and $6500, respectively. There was also a loss on the sale of equipment of $1700. How much cash was provided by operating activities? $271700 $178900 $175500 $241900 Vaughn Company reported net income of $69900 for the year. During the year, accounts receivable increased by $5700, accounts payable decreased by $4700 and depreciation expense of $8100 was recorded. Net cash provided by operating activities for the year is $67600 $69900. $62800. | $88400

Explanation / Answer

1.Net cash from operating activities=Net income+Depreciation expense-Increase in AR-Increase in Inventory+Decrease in Prepaid Expenses-Decrease in Accounts Payable+Loss on Sale of equipment'

=(210200+27500-17300-41600+4900-6500+1700)

which is equal to

=$178900.

2.Net cash from operating activities=Net income-Increase in Accounts Receivable-Decrease in Accounts Payable+Depreciation expense

=(69900-5700-4700+8100)

which is equal to

=$67600.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.