Question

A company had net income of $216,841. Depreciation expense was $28,774. During the year, accounts receivable and inventory increased by $14,088 and $27,397, respectively. Prepaid expenses and accounts payable decreased by $1,485 and $4,297, respectively. There was also a loss on the sale of equipment of $6,914. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method

Answer 1

$208,232.00

Step-by-step explanation:

The net cash provided by operating activities is the net income for the year plus depreciation expense, minus the increase in accounts receivable, inventory and the decrease the accounts payable , plus the decrease in prepaid expenses as well as the loss on disposal of equipment.

Net cash provided by operating activities=$216,841+$28,774-$14,088-$27,397+$1,485-$4,297+$6,914

=$ 208,232.00

The amount of cash provided by operating activities is $208,232.00