Answer:
Explanation:
1. Start with net income: $63,000
2. Add back non-cash expenses like depreciation expense: +$33,300
3. Adjust for changes in working capital:
- Accounts payable increased by $19,100, which means the company paid out $19,100 less in cash for expenses. So, we subtract $19,100: -$19,100
- Accounts receivable decreased by $26,100, which means the company collected $26,100 more in cash from its customers. So, we add $26,100: +$26,100
- Inventories increased by $7,200, which means the company spent $7,200 more in cash to purchase inventory. So, we subtract $7,200: -$7,200
4. Calculate the net cash provided by operating activities:
Net cash provided by operating activities = Net income + Non-cash expenses + Changes in working capital
Net cash provided by operating activities = $63,000 + $33,300 - $19,100 + $26,100 - $7,200
Simplifying the equation, we get:
Net cash provided by operating activities = $96,100
Therefore, the net cash provided by operating activities is $96,100.