Answered

IDNLearn.com offers a user-friendly platform for finding and sharing knowledge. Ask your questions and get detailed, reliable answers from our community of experienced experts.

The net income reported on the income statement for the current year was $212000. Depreciation recorded on plant assets was $35500. Accounts receivable and inventories increased by $2100 and $7900, respectively. Prepaid expenses and accounts payable decreased by $1900 and $12500 respectively. How much cash was provided by operating activities?

Sagot :

Abiolataiwo2015idn

Answer:

$226,900

Explanation:

Calculation to determine How much cash was provided by operating activities

Using this formula

Operating activities=Net income+Depreciation-Accounts receivable + inventories increased-Prepaid expenses - accounts payable decreased

Let plug in the formula

Operating activities=$212000 + $35500 - $2100 - $7900 + $1900 - $12500

Operating activities =$226,900

Therefore The Amount of cash that was provided by operating activities is $226,900

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.