Question

Mayweather reports net income of $340,000 for the year ended December 31. It also reports $111,900 depreciation expense and a $12,100 loss on the sale of equipment. Its comparative balance sheet reveals a $48,600 increase in accounts receivable, a $12,300 decrease in prepaid expenses, a $18,700 increase in accounts payable, a $15,300 decrease in wages payable, a $90,400 increase in equipment, and a $121,000 decrease in notes payable. Calculate the net increase in cash for the year.

Answer 1

$207,400.00

Step-by-step explanation:

Amount in $

Operating activities

Net income 340,000.00

Depreciation expense 111,900.00

Loss on sale of equipment 12,100.00

Increase in account receivables (48,600.00)

Decrease in prepaid expense 18,700.00

Decrease in wage payable (15,300.00)

Net cash flow from Operating activities 418,800.00

Investing activities

Increase in equipment (90,400.00)

Financing activities

Decrease in note payable (121,000.00)

Net increase in cash 207,400.00