A company had net income of $234,665. Depreciation expense is $21,819. During the year, Accounts Receivable and Inventory increa

Question

3 years ago

11

A company had net income of $234,665. Depreciation expense is $21,819. During the year, Accounts Receivable and Inventory increa

sed by $14,768 and $26,484, respectively. Prepaid Expenses and Accounts Payable decreased by $3,796 and $7,537, respectively. There was also a loss on the sale of equipment of $7,964. How much cash was provided by operating activities?

Business

1 answer:

Tpy6a [65] · Answer 1 · 2022-05-15T03:23:27+03:00

Tpy6a [65]3 years ago

7 0

Answer:

Cash generated from operating activities is $219,455

Explanation:

Because it starts from Net income, this is an indirect method. Indirect method starts with Net income.