Question

Additional information: (1) Received cash for the sale of equipment that had cost $37,550 yielding an $8,400 loss. (2) New equipment was purchased for $67,550 cash. (3) Cash dividends were paid. (4) Additional shares of stock were issued for cash. Select the correct answer from the following questions as they relate to the statement of cash flows for calendar-year 2019 using the indirect method. The total adjustment to reconcile net income to net cash provided by operating activities related to Accounts Receivable is?

Answer 1

Increase of 2,780

Step-by-step explanation:

The question is incomplete the balance sheet ofthe firm is attached.

To calculate the cash from operating income we need to determinate from the net income:

adjustment for non-monetary concetps (like depreication and gain at disposal)

the increases and decreases in the working capital account:

In this case Account Receivables decrease from 32,180 to 29,400

In total this decrease of 2,780 represent that the firm collected 2,780 more cash thus It will mean an increase of cash.