Question

Wilson Company reported net income of $105,000 for the year ended December 31, 2014. During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2014 using the indirect method was

Answer 1

$109,000

Step-by-step explanation:

Particulars Amount

Net income $105,000

Add: Depreciation expense $18,000

Less: Gain on disposal of equipment ($9,000)

Add: Inventory decrease $15,000

Less: Accounts payable decrease ($20,000)

Net cash provided by operating activities $109,000