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Klutz Dance Studio had net income of $207,000 for the year just ended. Klutz col

ID: 2501132 • Letter: K

Question

Klutz Dance Studio had net income of $207,000 for the year just ended. Klutz collected the following additional information to prepare its statement of cash flows for the year:

Klutz uses the indirect method to prepare its statement of cash flows. What is Klutz's net cash provided (used) by operating activities?

$125,000

$159,000

$259,000

$269,000

Klutz Dance Studio had net income of $207,000 for the year just ended. Klutz collected the following additional information to prepare its statement of cash flows for the year:

Explanation / Answer

Statement of cash flows of Klutz using Indirect method

Net cash provided (used) by operating activities: Amount

Net income for the year just ended $207,000

Add:  Decrease in accounts receivable 34,000

  Increase in accounts payable 21,000

  Depreciation expense 7,000

Net cash from operating activities =    $269,000