Question

Liberty Corporation had net income of $120,000 during the year. Depreciation expense was $6,000. The following information is available: Held- to-Maturity Bonds purchased 25,000 increase Common Stock issued 70,000 increase Accounts Receivable 10,000 decrease Accounts Payable 15,000 increase Gain on sale of AFS Investment 5,000 increase What amount should Liberty report as net cash provided by operating activities in its statement of cash flows for the year

Answer 1

$146,000

Step-by-step explanation:

Net income $120,000

Add: depreciation expenses $6,000

Increase Accounts Receivable 10,000

Decrease Accounts Payable 15,000

Less $5,000

(increase Accounts Receivable 10,000-

decrease Accounts Payable 15,000)

Net cash $146,000

Therefore the amount that Liberty should report as net cash provided by operating activities in its statement of cash flows for the year will be $146,000