Question

n preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $52,000 Accounts payable decreased by 18,000 Accounts receivable increased by 25,000 Inventories increased by 5,000 Depreciation expense was 30,000 Net cash provided by operating activities was:

Answer 1

$34,000

Step-by-step explanation:

Calculation for the Net cash provided by operating activities

Net income 52,000

Adjustments :

Add Depreciation expense 30,000

Less Decrease in Accounts payable (18,000)

Less Increase in accounts receivables (25,000)

Less Increase in inventories (5,000)

Net cash provided by operating activities $34,000

Therefore Net cash provided by operating activities was: $34,000