Question

Alvez Company reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, and a $100,000 decrease in notes payable. Calculate the cash provided (used) in operating activities using the indirect method\

Answer 1

$381,400

Step-by-step explanation:

Net income for the year 305,000

Adjustments to reconcile net income

Depreciation expense for the year 93,700

loss on sale of the equipment 10,000

increase in accounts receivable -40,200

Decrease in prepaid expense 10,200

Increase in accounts payable 15,200

decrease In wages payable -12,500

net cash provided by operating activities $ 381,400