Question

Minette Company reported net income of $200,000 for the year ended December 31, 2022. During the year, inventories decreased by $40,000, accounts payable decreased by $60,000, depreciation expense was $45,000 and a gain on disposal of equipment of $15,000 was recorded. Net cash provided by operating activities in 2022 using the indirect method was:_______

a. $245000.
b. $210000.
c. $240000.
d. $280000

Answer 1

b. $210000.

Step-by-step explanation:

Calculation for Net cash provided by operating activities in 2022

Using this formula

Net cash=Net income+Inventories- Account payable+ Depreciation expense -Gain on disposal

Let plug in the formula

Net cash=$200,000 + $40,000 − $60,000 + $45,000 −$15,000

Net cash = $210,000

Therefore the Net cash provided by operating activities in 2022 will be $210,000