Question

Peninsula Company reported net income of $290,000 for the year. During the year, accounts receivable increased by $21,000, accounts payable decreased by $9,000 and depreciation expense of $45,000 was recorded. Net cash provided by operating activities for the year is g

Answer 1

Answer:

$305,000

Explanation:

Given that,

Net income for the year = $290,000

Increase in accounts receivable = $21,000

Decrease in accounts payable = $9,000

Depreciation Expense = $45,000

Net cash provided by operating activities:

= Net Income of current year - Decrease in Accounts Payable + Depreciation Expense - Increase in Accounts Receivable

= $290,000 - $9,000 + $45,000 - $21,000

= $305,000