Question

Zook Incorporated had net income for 2018 of $4,000,000. Additional information is as follows: Amortization of patents $ 45,000 Depreciation on plant assets $1,650,000 Long-term debt: Bond premium amortization $65,000 Interest paid $900,000 Provision for doubtful accounts: Current receivables $80,000 Long-term nontrade receivables $30,000 What should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2018, based solely on the above information

Answer 1

$5,740,000

Step-by-step explanation:

Particulars Amount

Net income $4,000,000

Add: Amortization of patents $45,000

Add: Depreciation on plant assets $1,650,000

Add: Current receivables $80,000

Add: Long-term nontrade receivables $30000

Less: Bond premium amortization $65,000

Net cash provided by operating activities $5,740,000