Question

The following data are available for Springer Corporation.

Net income $300,000
Depreciation expense 60,000
Dividends paid 90,000
Gain on sale of land 15,000
Decrease in accounts receivable 30,000
Decrease in accounts payable 45,000
Net cash provided by operating activities is:________.
A) $240,000.
B) $330,000.
C) $360,000.
D) $420,000.

Answer 1

B) $330,000

Step-by-step explanation:

Cash from operating activities involves the cash inflows and outflows that is realised during normal busines s activities. It is the first section that appears in the statement of cash flows.

Other sources of cash flows is from investing activities and financing activities.

Operating cash flow= Net income+ Depreciation- Taxes +/- Change in working capital

Operating cash flow= 300,000+ 60,000- 15,000+ 30,000- 45,000= $330,000