Question

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:_____

a. $67600
b. $69900.
c. $62800.
d. $88400

Answer 1

Net cash[Operating activities] = $67,600

Step-by-step explanation:

Net cash[Operating activities] = Net income + Depreciation - Accounts Receivable (Increases) - Accounts Payable ( Decrease)

Net cash[Operating activities] = ($69,900 + $8,100 - $5,700 - $4,700)

Net cash[Operating activities] = $67,600