Question

During 2020 the Pharoah Company had a net income of $85100. In addition, selected accounts showed the following changes: Accounts Receivable $2700 increase Accounts Payable 900 increase Buildings 3900 decrease Depreciation Expense 1400 increase Bonds Payable 7900 increase What was the amount of cash provided by operating activities

Answer 1

Cash provided by operating activities $84,700

Step-by-step explanation:

The computation of the amount of cash provided by operating activities is shown below:

Net income $85,100

Add: depreciation expense $1,400

Less: increase in account receivable -$2,700

Add: Increase in account payable $900

Cash provided by operating activities $84,700