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A company's income statement showed the following: net income, $131,000; depreciation expense, $38,500; and gain on sale of plant assets, $12,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,100; merchandise inventory increased $26,500; prepaid expenses increased $7,900; accounts payable increased $5,100. Calculate the net cash provided or used by operating activities.

User Shmim
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Answer:

$138,800

Step-by-step explanation:

Particulars Amount

Net income $131,000

Add: Depreciation $38,500

Less: Gain on sale of plant ($12,500)

Add: Decrease in accounts receivable $11,100

Less: Increase in inventory ($26,500)

Less: Increase in prepaid expenses ($7,900)

Add: increase in account payable $5,100

Net Cash in Operating Activities $138,800

User Chris Lear
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