Question

Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000, and depreciation expense of $8,000 was recorded. Net cash provided by operating activities under the indirect method for the year is
a. $53,000.
b. $47,000.
c. $33,000.
d. $37,000.

Answer 1

Answer:

correct answer is  option C.

Step-by-step explanation:

net income of a year =  $35,000

accounts receivable is increased (AR)= $7,000

accounts payable decrease(AP) = $3,000

depreciation expense = $8,000

net cash provided = net income - increase in current asset (AR) - decrease in  current asset (AP) +non cash flow

net cash provided =  $35,000 -$7,000-$3,000+ $8,000

                               = $33000

hence the correct answer is  option C.