1) A company\'s income statement showed the following: net income, $130,000 and

Question

1) A company's income statement showed the following: net income, $130,000 and depreciation expense, $31,800. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,000; merchandise inventory increased $19,200; and accounts payable increased $4,000. Calculate the net cash provided or used by operating
2) Use the following information to calculate cash received from dividends: Dividends revenue $ 31,300 Dividends receivable, January 1 2,900 Dividends receivable, December 31 4,000 1) A company's income statement showed the following: net income, $130,000 and depreciation expense, $31,800. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $10,000; merchandise inventory increased $19,200; and accounts payable increased $4,000. Calculate the net cash provided or used by operating
2) Use the following information to calculate cash received from dividends: Dividends revenue $ 31,300 Dividends receivable, January 1 2,900 Dividends receivable, December 31 4,000
2) Use the following information to calculate cash received from dividends: Dividends revenue $ 31,300 Dividends receivable, January 1 2,900 Dividends receivable, December 31 4,000

Explanation / Answer

1) Computation of net cash flow from operating activity:

2) cash received from dividends:

Dividend receivable January 01. =. $2900

Add: dividend revenue for current year. = $31,300

Less: dividend receivable December 31 = ($4000)

Cash received from dividends = $30,200.

Particulars amount Net income $1,30,000 Add: depreciation $31,800 Add: Decrease in account receivable $10,000 Less: inventory increased ($19,200) Add: increase in account payable $4000 Cash flow from operating activities $1,56,600

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