Question

RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income, $230,000 Accounts payable increased $17,000 Prepaid rent decreased $18,500 Depreciation expense was $28,000 Accounts receivable increased $27,000 Gain on sale of a building was $19,500 Wages payable decreased $14,000 Unearned revenue increased $37,000 Using the indirect method, how much was RM's net cash provided by operating activities

Answer 1

Answer:

$ 270,000.00  

Explanation:

The amount of cash provided by the operating activities in the cash flow statement of RM company is the net income plus depreciation expense,accounts payable increase,prepaid rent decrease as well as the increase in unearned revenue.

Then we deduct the gain on sale of building,accounts receivable increase and wages payable decrease.

net cash provided by operating activities=$230,000+$17,000+$18,500+$28,000-$27,000-$19,500-$14,000+$37,000=$ 270,000.00