Question

Anew Health Care Company reports net income of $210,000 and Depreciation Expense of $24,000 for the year ending December​ 31, 2019. No long−term assets were sold or exchanged during 2019. They also have the following data​ available: December​ 31, 2018 Current​ Assets: Cash $30,000 $80,000 Accounts Receivable $160,000 96,000 Inventory $99,000 72,000 Total Current Assets $289,000 $248,000 Current​ Liabilities: Accounts Payable $52,000 $42,000 Salaries Payable 39,000 91,000 Total Current Liabilities $91,000 $133,000 Using the indirect​ method, what is the net cash provided by operating activities for the year ending December​ 31, 2019?

Answer 1

$344,000

Step-by-step explanation:

2018 2019 Change

Amount in $ Amount in $ Amount in $

Inventory 99,000.00 72,000.00 27,000.00 Total current asset 289,000.00 248,000.00 41,000.00 Accounts payable 52,000.00 42,000.00 (10,000.00)

Salaries payable 39,000.00 91,000.00 52,000.00

Amount in $

Net income 210,000.00

Add depreciation 24,000.00

Changes to current assets and liabilities

Inventory 27,000.00

Total current asset 41,000.00

Accounts payable (10,000.00)

Salaries payable 52,000.00

Net cash flows from operating activities 344,000.00