Answer:
$183,200
Step-by-step explanation:
To compute net cash provided by operating activities using the indirect method, we need to adjust net income by accounting for changes in noncash current asset accounts.
Net cash provided by operating activities can be calculated using the following formula:
Net cash provided by operating activities = Net income + Depreciation and amortization expense +/- Changes in noncash current assets +/- Changes in noncash current liabilities
Given:
Net income = $190,000
Changes in noncash current asset accounts:
Accounts receivable decreased $75,700
Prepaid expenses increased $26,400
Inventories increased $43,500
Let's calculate the net cash provided by operating activities step by step:
Start with net income: $190,000
Adjust for changes in noncash current asset accounts:
Accounts receivable decreased $75,700: Subtract $75,700
Prepaid expenses increased $26,400: Add $26,400
Inventories increased $43,500: Add $43,500
Net income adjusted for changes in noncash current asset accounts:
$190,000 - $75,700 + $26,400 + $43,500
The final result is the net cash provided by operating activities:
Net cash provided by operating activities = $190,000 - $75,700 + $26,400 + $43,500
Using a calculator, we can compute the value:
Net cash provided by operating activities ≈ $183,200
Therefore, the net cash provided by operating activities, using the indirect method, is approximately $183,200.