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A company had net income of $259440. Depreciation expense is $23920. During the year, accounts receivable and inventory increased $13800 and $36800, respectively. Prepaid expenses and accounts payable
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22 votes
22 votes
A company had net income of $259440. Depreciation expense is $23920. During the year, accounts receivable and inventory increased $13800 and $36800, respectively. Prepaid expenses and accounts payable decreased $1840 and $12880, respectively. There was also a loss on the sale of equipment of $15640. How much cash was provided by operating activities

User Thibaut Loiseleur
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1 Answer

22 votes
22 votes

Answer:

Net cash flow from operating activities $237,360

Step-by-step explanation:

The computation of the cash was provided by operating activities

Net income $259,440

Add: depreciation expense $23,920

Less: Increase in account receivable -$13,800

Less: increase in inventory -$36,800

Add: Decrease in prepaid expense $1,840

Less: decrease in account payable -$12,880

Add: loss on sale of equipment -$15,640

Net cash flow from operating activities $237,360

User Lingyfh
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