Question

Blossom Company reports the following information: Net income $520000 Depreciation expense 120000 Increase in accounts receivable 58000 Blossom should report cash provided by operating activities of $458000. $582000. $698000. $342000.

Answer 1

$582,000

Step-by-step explanation:

Given that

Net income = $520,000

Depreciation expense = $120,000

Increase in accounts receivable = 58,000

The computation of cash provided by operating activities is given below:-

= Net income + Depreciation expenses - Increase in accounts receivable

= $520,000 + $120,000 - $58,000

= $640,000 - $58,000

= $582,000

Therefore for computing the cash provided by operating activities we simply applied the above formula.