Question

Net income was 89400; accounts receivable decreased by 24000; inventory increased by 14400; proceeds from the issuance of long-term debt were 30000

Answer 1

Net cash provided by operating activities = $135,800

Explanation:

Given:

Net income = 89400

Accounts receivable decreased = 24000

Inventory increased = 14400

Issuance of long-term debt = 30000

Missing data;

Accounts payable decreased = $8,200

Equipment purchases = 100,000

Depreciation and amortization expense = $45,000

Find:

Net cash provided by operating activities

Computation:

Particular Amount

Net Income 89400

Add Amortization 45000

Net income before non cash expenses 134400

Add Decrease in AR 24000

Less Increase in inventory 14400

Less Decrease in AP 8200

Net cash provided by operating activities $135,800