Question

The net income for Bramble Corp. for 2022 was $264,300. For 2022, depreciation on plant assets was $65,600, and the company incurred a loss on disposal of plant assets of $30,300.

Required:
Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company’s accounts.

Answer 1

$360,200

Step-by-step explanation:

Indirect method reconciles the Net Income to Cash from operating cashflows.

Cash flow from operating activities

Net Income $264,300

Adjust for non- cash items :

Depreciation $65,600

Loss on disposal of plant asset $30,300

Net Cash Provided by Operating Activities $360,200

thus,

net cash provided by operating activities is $360,200