Question

earned net income of $64,000 after deducting depreciation of $4,000 and all other expenses. Current assets decreased by $3,000​, and current liabilities increased by $9,000. How much was Wedding's

Answer 1

$80,000

Explanation:

So this is a basic problem which involves to find the wedding's cash provided by operating activities.

For that, we need to add all the cash mentioned, such that:

Wedding's Cash provided by activities = Net Income + Depreciation + Decrease in current assets + increase in current liabilities

Wedding's Cash provided by activities= 64000+ 4000+ 3000+ 9000 = $80000

Wedding's Cash provided by activities= $80000

(Note : This is the indirect method)