Question

Larkspur Photography reported net income of $91,000 for 2022. Included in the income statement were depreciation expense of $5,800, patent amortization expense of $4,200, and a gain on disposal of plant assets of $3,700. Larkspur’s comparative balance sheets show the following balances. 12/31/22 12/31/21 Accounts receivable $21,300 $28,800 Accounts payable 9,900 6,400 Calculate net cash provided by operating activities for Larkspur Photography.

Answer 1

Net cash provided by operating activities $108,300

Step-by-step explanation:

The computation of the net cash provided by operating activities is shown below;

Cash provided by operating activities

Net income $91,000

Add: depreciation expense $5,800

Add: amortization expense $4,200

Less: gain on disposal of plant assets -$3,700

Add; decrease in account receivable ($21,300 - $28,800) $7,500

Add: increase in account payable ($9,900 - $6,400) $3,500

Net cash provided by operating activities $108,300