Question

Wildhorse Beverage Company reported the following items in the most recent year. Net income $43,400 Dividends paid 5,210 Increase in accounts receivable 11,440 Increase in accounts payable 8,490 Purchase of equipment (capital expenditure) 8,720 Depreciation expense 5,490 Issue of notes payable 24,020 Compute net cash provided by operating activities, the net change in cash during the year.

Answer 1

Answer:

Net cash provided by operating activities is $45,940

Net change in cash during the year is $56,030

Explanation:

Net cash provided by operating activities = Net income $43,400 + Depreciation expense 5,490 - Increase in accounts receivable 11,440 + Increase in accounts payable 8,490 = $45,940

Net change in cash during the year = Net cash provided by operating activities $45,940 - Dividends paid 5,210 - Purchase of equipment (capital expenditure) 8,720 + Issue of notes payable 24,020 =  $56,030