MC Qu. 87 The following additional information is The following additional infor
ID: 2528065 • Letter: M
Question
MC Qu. 87 The following additional information is The following additional information is available from the financial statements of Hitchens Company: Amortization Expense Purchase of building for cash Depreciation Expense Increase in Accounts Receivable Increase in Bonds Payable Increase in Common Stock Increase in Inventory Decrease in Accounts Payable Increase in Salaries and Wages Payable Cash dividends paid Net income $18,000 135,000 54,000 15,000 250,000 60,000 43,000 68,000 25,000 100,000 292,000 What is the net cash provided by operating activities? O$263,00o $285,000 O $396,000 $368,000Explanation / Answer
A. $263,000
Net income + Amortization expense + Depreciation expense - Increase in accounts receivable - Increase in inventory - Decrease in accounts payable + Increase in wages payable = Net cash flows from operating activities
$292,000 + $18,000 + $54,000 - $15,000 - $43,000 - $68,000 + $25,000 = $263,000
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