Question

A company had net income of $209800. Depreciation expense is $26500. During the year, Accounts Receivable and Inventory increased $16700 and $41500, respectively. Prepaid Expenses and Accounts Payable decreased $4500 and $5500, respectively. There was also a loss on the sale of equipment of $1900. How much cash was provided by operating activities?

Answer 1

$2,000

Step-by-step explanation:

Cash flow from Operating Activities

Net Income $209800

Adjustment to non-cash items :

Depreciation expense $26500

Adjustment for Changes in working capital :

Accounts Receivable ($16700)

Inventory increased ($41500)