Question

A company had net income of $210000. Depreciation expense is $27000. During the year, Accounts Receivable and Inventory increased $17000 and $42000, respectively. Prepaid Expenses and Accounts Payable decreased $5000 and $6000, respectively. There was also a loss on the sale of equipment of $2000. How much cash was provided by operating activities? a. $179000 b. $175000 c. $271000 d. $241000

Answer 1

a. $179000

Step-by-step explanation:

net income: 210,000

non-monetary terms:

depreciation expense 27,000

loss on disposal 2,000

adjusted income 239,000

A/R increase ( 17, 000)

Inventory Increase increase (42,000)

A/P decrease ( 6,000)

Prepaid Expenses 5,000

net changes in working capital: (60,000)

net cash provided by operating activities 179,000