Question

Tiki Corporation had net income of $120,000 during the year. Depreciation expense was $6,000. The following information is available: Held- to-Maturity Bonds purchased25,000increase Common Stock issued70,000increase Accounts Receivable10,000decrease Accounts Payable15,000increase Gain on sale of AFS Investment5,000increase What amount should Tiki report as net cash provided by operating activities in its statement of cash flows for the year

Answer 1

Tiki should report $101,000 as net cash provided by operating activities in its statement of cash flows for the year.

Step-by-step explanation:

Tiki Corporation

Statement of cash flows (extract)

Net income $120,000

Add: Depreciation expense 6,000

Less: Increase Accounts Receivable (10,000)

Less: Decrease in Accounts Payable (15,000)

Net cash flows from operating activities $101,000