Question

The net income reported on the income statement for the current year was $220,000.

Depreciation was $50,000. Accounts receivable and inventories decreased by $10,000 and $30,000, respectively.

Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000.

How much cash was provided by operating activities?
a. $281,000
b. $317,000
c. $301,000
d. $239,000

Answer 1

B) USD 317,000/-

Step-by-step explanation:

By adding reported values and subtracting payable we will get a derivation like below:

= 220,000+50,000+10,000+30,000-1000+8000

= USD 317,000/-